base erosion and profit shifting

UK Government does the dance of transparency!

In a backbench revolt on 1 May 2018 the UK Government was forced to back new legislation which will introduce public ownership registers in Britain’s 14 overseas territories.  The concept of public ownership registers was originally proposed by David Cameron...

Hybrid Mismatch Arrangements

Additional rules to further extend the reach of the proposals to tackle hybrid arrangements. Hybrid entities have been used by some groups to take advantage of differences in the treatment of certain types of entity in different countries. This can...

Diverted Profits Tax Guidance Issued

HMRC has issued guidance in respect of the Diverted Profits Tax (DPT), replacing the interim guidance issued in March 2015. DPT was introduced by Finance Act 2015, and applies from 1 April 2015.   Key points to note about DPT ·        ...

Is taxation a poisoned chalice?

"Is the taxation a poisoned chalice?" That is what many told to Commissionaire Pierre Moscovici when he found out that President Juncker had given him the taxation portfolio. In the last eighteen months, the European Commission’s and OECD’s strong commitment...

BEPS: Transfer Pricing Status Update

The Organisation for Economic Co-operation and Development (‘OECD’) held its final public consultation on Actions 8-10 (transfer pricing/'TP') of the Base Erosion and Profit Shifting (BEPS) project on 6 and 7 July 2015. The first day of meeting focused on...

Tax Incentives under Scrutiny

On 9 July 2015, the OECD released a discussion draft on options for low income countries' effective and efficient use of tax incentives for investment. This Discussion Draft is a result of the G20’s Development Working Group (DWG) who has...

EU Action Plan: Nice to meet you…..

The European Commission presented an Action Plan to fundamentally reform corporate taxation in the EU on 17 June 2015. The Action Plan sets out a series of initiatives to tackle tax avoidance, secure sustainable revenues and strengthen the Single Market...

BEPS – Action 8: Hard-to-Value Intangibles

The OECD published its discussion draft  which deals with work in relation to Action 8 of the Action Plan on Base Erosion and Profit Shifting (BEPS) and focuses on arm’s length pricing of intangibles when valuation is highly uncertain at the...

BEPS Action 7 (PE): We are not there yet….

The OECD reached an important milestone of its work on Action 7 [Prevent the Artificial Avoidance of Permanent Establishment (PE) Status] of the Action Plan on Base Erosion and Profit Shifting (BEPS). On 15 May, public comments are invited on a new...

BEPS- Action 11: Pay Attention!

On 16 April 2015, the OECD has invited public comments on a discussion draft which deals with Action 11 - Improving the analysis of BEPS.  Action 11 of the BEPS Action Plan focuses on improving the availability and analysis of data on...

BEPS- CFC

On 3 April, the OECD published a Discussion Paper on Action 3 (Strengthening CFC Rules) of the BEPS Action Plan focusing on develop recommendations regarding the design of controlled foreign company (CFC) rules. The Committee on Fiscal Affairs (CFA) invites interested...

BEPS – One Step Closer

The OECD has released a Discussion Draft on Action 12 (Mandatory Disclosure Rules) of the BEPS Action Plan on 31 March. The Action Plan calls for this work to be completed by September 2015 and the CFA invites interested parties to...

BEPS: The Global Fight against Tax Avoidance Continues

On 9-10 February 2015, the OECD presented the latest developments in the OECD/G20 project to combat BEPS by multinational enterprises during a G20 Finance Ministers and Central Bank Governors’ meeting in Istanbul, Turkey. In their Communiqué, the G20 Ministers and...

BEPS Action 7 – More Questions than Answers

On 21 January, the OECD held a public discussion meeting on BEPS Action 7 focusing on preventing the artificial avoidance of permanent establishment (PE). Action 7 is one of the most discussed action points of the BEPS Action Plan and...

Luxembourg: New Year, New Rules….

Summary Article 29a of the General Tax Code on the Advance Tax Rulings and Advance Ruling Committee entered into force on 1 January 2015 in Luxembourg; Luxembourg endorsed the EU Commission’s plan to present a draft directive on mandatory automatic...

Keep Calm and Comment on BEPS

I am wondering whether it is only me who is facing hundreds of pages of discussion documents inviting stakeholders’ input or are you also sharing the same experience while you are drinking your strong cup of coffee today! It is...

BEPS – The Oldest Trick in the Book

On 18 December, the OECD has invited public comments on a discussion draft which deals with action 4 (Interest deductions and other financial payments) of the BEPS Action Plan. The use of interest (and in particular related party interest) is...

BEPS: Keep Calm and Get Ready for Action 10

On 16 December, the OECD published two discussion drafts on Action 10 and has invited public comments on the transfer pricing aspects of cross-border commodity transactions and on the use of profit splits in the context of global value chains...

Clamp down on avoidance by multinational groups

The Chancellor finally gave some more detail on his promise to tackle the techniques used by multinationals groups to shift profits offshore. This change will impact multinational groups like those which have been very publicly named and shamed in the...

Looking Back, BEPS: What happened in the last 14 months?

This September is a very challenging and landmark period for the international tax world. The OECD releases its first recommendations for a co-ordinated international approach to combat tax avoidance by multinational enterprises under the OECD/G20 Base Erosion and Profit Shifting (BEPS)...

2014 OECD Model Tax Convention and Commentary

On 1 September 2014, the Organization for Economic Co-operation and Development (the OECD) published the condensed version of the OECD Income and Capital Model Convention and Commentary 2014 (2014 Update). This is the ninth edition of the condensed version of...

BEPS Action Plan – The Ambitious Programme

This September will be a very exciting period for the international tax world and it is expected that the BEPS project marks its first turning point in the history of international co-operation on taxation. Pascal Saint-Amans, Director of OECD Centre...

UK Priorities for the G20-OECD BEPS project

In July 2013, the OECD published an Action Plan which set out 15 different actions to overhaul the international tax system.  Base Erosion and Profit Shifting (BEPS) is defined as essentially being where there is a divorce between the location...

OECD seek to tackle global tax evasion

On 13th February 2014, the OECD presented their latest weapon in the attack of global tax avoidance. The new standard builds on specific country agreements and 2010 US FATCA provisions to drive greater transparency and disclosure. In essence the standard...

OECD gives an update on the BEPS Action Plan

Base erosion and profit shifting (BEPS) refers to the situation where there is a divorce between the location of profit and the location of the value creation. The OECD issued a detailed Action Plan to tackle BEPS. On 23 January...