For the first time we see a confluence of society's concern and the tax system. Governments, companies and individuals are weighing in on this debate.
In July 2013, the OECD released its Action Plan for Base Erosion and Profit Shifting (BEPS) which seeks to address the discrepancy between the current international tax rules and the concept of the ‘fair share’ through recommended changes to tax rules.
The key plank of the OECD's plan is to address the lack of tax transparency. The convergence of five streams gave rise to the BEPS debate:
- Lack of government revenue and the need for greater expenditure
- Risk of corporate social responsibility regarding taxation and media focus
- Internationalisation of business
- Fragmentation of the supply chain
- The digital economy.
KPMG's Tax team can assist companies to consider reputational risk, tax narratives, their tax structures and how to future proof them. If you would like assistance, please call your KPMG adviser or contact David Linke or Grant Wardell-Johnson.