On 19 July, the OECD released its action plan for dealing with Base Erosion and Profit Shifting (“BEPS”) by multinationals.
This has become a headline issue in many countries, at a time when Governments are facing significant revenue shortfalls.
The OECD’s prescription is wide ranging, from tightening of domestic tax rules to greater tax transparency.
The plan identifies the areas where the OECD considers action needs to be taken to deal with perceived weaknesses in the international tax rules.
It will likely lead to some fundamental changes to the way both tax structuring and transfer pricing are viewed by tax authorities.