World

Finance officials agree to clamp down on tax evasion by multinational companies

  • International Monetary Find (IMF) Managing Director Christine, right, sits next to Glenn Robert Stevens, Governor of the Reserve Bank of Australia, center, and  Mathias Cormann, Minister for Finance of Australia, before a group picture with Finance Ministers and Central Bank Governors from the G20 in Lima, Peru, Thursday, Oct. 8, 2015. The world's finance ministers and central bankers are in Lima for the joint annual meetings of the World Bank and IMF that run through Sunday. (AP Photo/Geraldo Caso Bizama)

    International Monetary Find (IMF) Managing Director Christine, right, sits next to Glenn Robert Stevens, Governor of the Reserve Bank of Australia, center, and Mathias Cormann, Minister for Finance of Australia, before a group picture with Finance Ministers and Central Bank Governors from the G20 in Lima, Peru, Thursday, Oct. 8, 2015. The world's finance ministers and central bankers are in Lima for the joint annual meetings of the World Bank and IMF that run through Sunday. (AP Photo/Geraldo Caso Bizama)  (The Associated Press)

  • Finance Ministers and Central Bank Governors from the G20 pose for a group picture with International Monetary Find (IMF) Managing Director Christine Lagarde, second right front row, and World Bank President Jim Yong Kim, first right front row, in Lima, Peru, Thursday, Oct. 8, 2015. The world's finance ministers and central bankers are in Lima for the joint annual meetings of the World Bank and IMF that run through Sunday. (AP Photo/Geraldo Caso Bizama)

    Finance Ministers and Central Bank Governors from the G20 pose for a group picture with International Monetary Find (IMF) Managing Director Christine Lagarde, second right front row, and World Bank President Jim Yong Kim, first right front row, in Lima, Peru, Thursday, Oct. 8, 2015. The world's finance ministers and central bankers are in Lima for the joint annual meetings of the World Bank and IMF that run through Sunday. (AP Photo/Geraldo Caso Bizama)  (The Associated Press)

Finance officials from the world's 20 biggest countries are committing to tougher laws to prevent multinational companies from avoiding as much as $250 billion a year in taxes.

The unanimous agreement was announced Friday in Peru's capital on the sidelines of the annual meeting of the International Monetary Fund. The plan will be presented for approval by heads of state from the Group of 20 nations at a summit next month in Turkey.

Officials at a press conference said the plan will address concerns about whether companies such as Apple and Google are paying their fair amount in taxes.

The new rules would seek to enhance existing tax treaties and align domestic rules affecting cross-border economic activities to prevent companies from so-called "tax shopping" for the most favorable rates.