New Thinking
A roadmap for mid-market business owners
Adapting customer loyalty
Australia and the corporate governance experience
Australian and UK rail franchising experiences
Australian Regional Capacity Index
Australia's defence industry and the rise of Asia
Better business reporting – the journey continues
Big Data and why it matters
CHAFTA: Look to China for growth
Chinese Investment in Australia Demystified
Cloud – enabling business strategy
Corporate growth
Critical actions for a positive future
Cyber and digital security
Cyber security – Detect cyber threat
Cyber security – Protect your business
Cyber security – Respond to cyber threats
Cyber security – Secure organisational growth
Digital: A framework for the age of disruption
Digital: Reinventing the customer experience
Digital identity key for unlocking new business
Disrupting the board
Empowering Australians' impacted by their service
Financial reports de-cluttering in ASX200 companies
Financial System Inquiry – Innovation: Digital identity
Financial System Inquiry – Regulatory system
Financial System Inquiry – Superannuation and retirement incomes
Fixing Australia's naval shipbuilding industry
Future of investment management
Global shifts in defence and security
Harnessing the power of disruption
Here comes the M&A boom
Human services: rethinking regulation
Improving cities through urban renewal
Indirect Tax and International Tax – double the trouble?
Infrastructure trends
Leaving leadership development to chance is not worth the risk
Pricing: Defining the right strategy
Promising prospects in Australian corporate finance
Resource sector outlook
Risk transformation: Embracing conscious risk taking
Risk transformation: Engaging the first line of defence
Risk transformation: What makes a great CRO?
Road testing a public service reform agenda
Social media risks
Tax Reform: a call for fundamental change
Tax Reform: a new simplicity for fringe benefits
Tax Reform: a single tax collector
Tax Reform: stopping the fiscal drag
Tax Reform: property services tax
Tax reform – shaping the future
Tax transparency and morality
Technology and growth: working with the 'connected customer'
Technology's impact on investment industry
The constantly changing role of the CIO
The power of population
The private side of public investment
The Road to Paris
Transforming for consumer growth
Urban and regional growth: a smarter way
Utilities: technology is the future
Value of Audit
What is the future for government?
What a Japanese submarine option could mean for Australia
Tax transparency and morality


Tax transparency and morality

Societal concern about this issue has lead to intense political debate and is driving international tax reform.

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.


Grant Wardell-Johnson
"Many of our clients are reviewing their structures and considering what potential tax changes might mean."

Grant Wardell-Johnson
Australian Tax Centre Leader
A 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:

1. Lack of government revenue and the need for greater expenditure.
2. Risk of corporate social responsibility regarding taxation and media focus.
3. Internationalisation of business.
4. Fragmentation of the supply chain.
5. The digitalisation of the economy.

The challenge

Governments and business need to work together over the next couple of years, together with the OECD, and think about how tax systems should operate.

The main threat to business is not the potential success of changing tax rules, but the failure to gain international consensus. This will lead to countries going their own way and the fragmentation of international tax rules.

So what does this mean?

It means that you have to stay on top of what these developments are. You need to understand how profits are created in a particular country, what the capital risk is, how financing arrangements are put together, so that you can understand what the impact will be on the organisation – both in country but also on a regional and a global basis.

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