Budget 2015 indicated that the Canadian government continues to work with other members of the Organisation for Economic Co-operation and Development (OECD) and the G-20 on the issues identified in the OECD’s Action Plan on Base Erosion and Profit Shifting (BEPS). BEPS refers to legal tax planning arrangements undertaken by multinational enterprises that exploit the interaction between domestic and international tax rules to shift profits away from the countries where income-producing activities take place.

The Government indicated that it will proceed in this area in a manner that balances tax integrity and fairness with the competitiveness of Canada’s tax system, underscoring its commitment to keep Canada an attractive destination for business investment.