To be effective this would mean tackling the tax-cutting race to the bottom among countries. Poor countries are big losers in this downward spiral as they are particularly dependent on corporation tax, relying on it for about 16% of their revenue, as opposed to an average of 8% in developed countries. As IMF director Christine Lagarde said, “the problem with a race to the bottom is that everyone ends up at the bottom”. As tax revenue means money for poverty fighting public services, the last place we want to end up is at the bottom with no corporate tax being paid.
Article source: http://www.huffingtonpost.co.uk/natasha-adams/theresa-may-tax-avoidance-g20_b_11831644.html?utm_hp_ref=uk-politics&ir=UK+Politics