What it is
The OECD Action Plan on Base Erosion and Profit Shifting (BEPS) was endorsed by G20 Finance Ministers on 19 July 2013 in Moscow. The Action Plan sets out 15 areas of work to be undertaken across a range of tax issues, including the digital economy, transfer pricing, coherence of corporate income taxation, as well as transparency, certainty and predictability of taxation. The timeline for BEPS is ambitious aiming for completion by December 2015, and will integrate a number of related on-going OECD projects on fundamental tax issues, among them the definition of permanent establishment and the transfer pricing of intangibles.
Why it matters
The OECD project on Base Erosion and Profits Shifting (BEPS) presents an opportunity to restore public and private sector confidence in the corporate taxation system, by undertaking review and analysis to ensure that tax rules are up to date, without dampening the potential for private sector growth and job creation through cross-border trade and investment. The OECD states that existing rules have revealed weaknesses which have created opportunities for BEPS: “where the interaction of different tax rules leads to double non-taxation or less than single taxation.” These are the situations that the BEPS project seeks to remedy. These concerns will be addressed through 15 BEPS Actions covering a wide range of international tax issues from the digital economy to the transfer pricing of intangibles impacting all sectors across jurisdictions.
How it impacts
The OECD is the right place for the BEPS analysis to take place. If as a result of the analysis rules are changed, we believe that these changes must be done on the broadest possible international basis through the G20 and beyond, to ensure a level playing field in the global economy. This will be essential to harnessing the greatest potential for trade and investment by all players in the global economy – developed and developing countries alike. In this context we believe that the OECD BEPS project can only reach a successful outcome with the full and active engagement of business and look forward to continued engagement with OECD on this initiative. The OECD is seeking to complete work on the BEPS Actions whilst preserving its consensus-based international tax framework. Proposals implemented under one Action will no doubt have significant consequences for others. BIAC continues to advocate that full consideration should therefore be given to the wider impact of all proposals, intended and unintended, before implementation of Action Plan Recommendations.
BIAC BEPS PROJECT RECOMMENDATIONS: POSITION SUMMARY – January 2017
BIAC BEPS POSITION PAPER – January 2017
BIAC ADVOCACY SUMMARIES
BIAC CBCR DOCUMENTS
- Final BIAC Statement on Public Country by Country Reporting (“CbCR”) – January 2017
- Country-by-country reporting BIAC summary of key points from the Action 13 Final Report – July 2016
OECD Final Reports: click HERE
OECD BEPS Work: http://www.oecd.org/ctp/beps.htm
OECD Issues Communications on Engagement with Stakeholders—December 2013: http://www.oecd.org/tax/beps-oecd-engagement-with-stakeholders.htm
Action Plan on BEPS—July 2013: http://www.oecd.org/ctp/BEPSActionPlan.pdf