On 16 september 2014, OECD released its first recommandations for a co-ordinated international approach to combat tax avoidance by multinational enterprises. These recommendations are set out under the OECD-G20 Base Erosion and Profit Shifting (BEPS) Project which aims at tackling practices which erode the tax base of companies and artificially shift profits to low or no-tax jurisdictions.
In this context, OECD published the 7 first reports of its Action Plan to help countries to:
- Address tax challenges of the digital economy (Action 1);
- Neutralise hybrid mismatch arrangements (Action 2);
- Counter harmful tax practices more effectively (Action 5);
- Prevent the the granting of treaty benefits in inappropriate circumstances (Action 6);
- Address transfer pricing issues for intangibles (Action 8);
- Improve transfer pricing documentation (Action 13); and
- Use of a multilateral tax treaty to implement all BEPS measures (Action 15).
This BEPS toolkit is to be presented to G20 Finance Ministers at their meeting on 20-21 September in Cairns, Australia.