As G-20 nations approved the final report on Monday to jointly deal with tax evasion of global companies such as Google, the Korean government is set to give shape to a detailed plan as a follow-up measure, according to the government.
The finance ministry told reporters on Wednesday the G-20 nations agreed to legalize so-called "Google Tax" in a bid to find out hidden tax revenue from global companies. Accordingly, the government will lay out detailed plans to analyze global firms' tax evasion and map out appropriate measures.
"Google tax" is the popular term used to refer to a diverted profits tax, aiming to impose a levy on company profits that are routed via "contrived arrangements" to tax havens.
The move came as some Internet giants such as Google, Apple and Facebook have been criticized for evading taxes by raking money in high-tax economies and moving it to low-tax nations.
The behaviors have led to the tax revenue loss amounting to $240 billion, an equivalent to 10 percent of global tax revenue, according to OECD data.
