The OECD Action Plan reflects some of the most important changes to international tax rules since the beginning of tax treaties almost 100 years ago. Many of these rules will have to be revised over the next two years which is a very challenging timetable, and it is important that the views of business as to what is practical are taken fully into account.
There are twin drivers of change here: firstly that Governments and the OECD will be working together on tax systems, and how profits and value are created in individual countries; and secondly that businesses are becoming increasingly international, with more complex regional and sometimes global supply chains.
This means it is essential that we work with other regions such as the EU, to get the details right. This is why we were delighted to host Commissioner Šemeta and to give him the opportunity to hear first-hand from leading Australian stakeholders in this process ahead of his scheduled meetings with Australian Government ministers in Canberra.
This is only the start of the engagement process as far as KPMG Australia is concerned. We have the OECD Tax Commissioner coming here soon and we will be placing ourselves firmly at the centre of the evolving debate over the next 12 months on behalf of clients and corporate Australia. While taking full account of the changing public mood on corporate tax both domestically and globally, we have to ensure that changes are measured, practical, and not over-bureaucratic for business, which would damage the drive for extra revenues which all governments currently seek.