In July 2013, the OECD released its Action Plan for Base Erosion and Profit Shifting (BEPS) which seeks to address the growing issue of taxing multinational companies.
What’s the status of the OECD’s Base Erosion and Profit Shifting (BEPS) Action Plan?
The BEPS action plan has been launched last year, and has been supported by the G20 leaders, and we are defrocking it so that we will be ready to report in September on six of the fifteen actions to be delivered in September 2014, and will be reporting in the coming days to the G20 Finance Ministers on where we stand. Meaning that we have defrocked most of the notes, the working groups are working, and we are reaching consensus to be able to deliver by September.
Are you confident that the Action Plan will be fully endorsed, or only partially?
There will be a duty for us to succeed, meaning that we reach consensus on all the actions, and we are confident because we do have political support, the leaders of the G20, all of the OECD countries have a greater sense of direction, we have a road map which is the action plan which sets the objection for the fifteen actions, and now it’s for the technical people to come up with the technical answers, and we will get them, meaning that by the end of 2015 we will be addressing all the aspects of Base Erosion and Profit Shifting.
How important is it that business gets involved?
It is absolutely critical that the business is involved, we know that there is some reluctance on some parts of the business community while some others are very supportive, what we need are constructive comments on all of the papers. We need to go fast because there is quick deadlines, but the business community will have to input, will have to give its views, will have to tell us what is feasible and what is not feasible, what are the non-reachable side effects of what we are defrocking. So it’s absolutely critical that the business community be constructive and be positive in its input into the BEPS project.