Base Erosion and Profit Shifting (BEPS)
Background
As a process for reforming the international tax system and discourage international tax avoidance, the Organisation of Economic Cooperation and Development (OECD), in 2013, released a 15-point action plan, known as the BEPS Project. The core pillars of BEPS are: Increasing coherence in tax rules that impact cross-border taxation, increased tax transparency and documentation, improve information sharing among governments and reinforcing requirement for commercial substance, so that tax liability is aligned to the location of value creation.
Issues
Background
As a process for reforming the international tax system and discourage international tax avoidance, the Organisation of Economic Cooperation and Development (OECD), in 2013, released a 15-point action plan, known as the BEPS Project. The core pillars of BEPS are: Increasing coherence in tax rules that impact cross-border taxation, increased tax transparency and documentation, improve information sharing among governments and reinforcing requirement for commercial substance, so that tax liability is aligned to the location of value creation.
Issues
- There is need for a road map on a multilateral tax treaty or
