10 February 2015: Group of 20 (G20) finance ministers and central bank governors released a Communiqué from their first meeting under Turkey’s presidency. The Communiqué expresses their full support to the G20-Organization for Economic Co-operation and Development (OECD) Base Erosion and Profit Shifting Project (BEPS), which aims to modernize international tax rules and tackle cross-border tax avoidance, and to the achievement of a successful outcome of the Third International Conference on Financing for Development (FfD3) “towards the implementation of the post-2015 development agenda.”

The Communiqué reflects on, inter alia: growth and employment outlooks; oil price declines; monetary policy action; fiscal policy; risk scenarios; strategies to boost investment; and financial reform agendas. It recognizes the G20’s role in reducing vulnerabilities and boosting confidence by implementing and communicating macroeconomic and structural policies, and commits to reviewing G20 growth strategies agreed at a G20 Leaders meeting in Australia to ensure the strategies remain appropriate, that growth is inclusive and that policies address income inequality. The signatories intend to present the first accountability report on the implementation of these growth strategies at the Antalya Summit.

OECD presented the BEPS project at the meeting. The G20-OECD BEPS Action Plan outlines 15 elements of international tax rules to be addressed by the end of 2015, with the aim of helping governments protect their tax bases and ensure predictability to taxpayers, while guarding against unwarranted compliance burdens, restrictions or double taxation. OECD Secretary-General Angel Gurría said agreements on key elements of the BEPS project among OECD and G20 countries “demonstrate that progress is being made toward a fairer international tax system.” In the Communiqué, finance ministers and central bank governors endorse the mandate to develop a multilateral instrument to streamline implementation of tax treaty-related measures, and reaffirm their commitment to strengthening tax transparency.

A number of reports were delivered in advance of the meeting, including the International Monetary Fund (IMF) Surveillance Note, the OECD Going for Growth Report, OECD reports on small and medium enterprises (SMEs) and an OECD report, ‘Mapping Channels to Mobilize Institutional Investment in Sustainable Energy.’

The Communiqué also outlines issues for further action, including with the IMF, OECD and the World Bank. The Climate Finance Study Group is requested to continue its work and report back at the April meeting, and all international financial institutions (IFIs) are urged to deepen collaboration on climate finance.

The meeting convened in Istanbul, Turkey, from 9-10 February 2015. The finance ministers are expected to convene four times throughout the year. [G20 Press Release] [Communiqué] [OECD Press Release on BEPS Project] [G20 Website]