What has happened?

On 5 October 2015, the OECD issued its final papers for each action item in the Base Erosion and Profit Shifting (BEPS) project. 

The BEPS project has been underway since 2013 and involves 15 action items designed to counteract BEPS by multinationals (such as the avoidance of a taxable presence in a jurisdiction, or profit shifting by way of the payment of fees to a related party out of a high tax jurisdiction to a low tax jurisdiction). 

The BEPS project is the most significant international tax reform project in decades.

The OECD's recommendations will lead to more work – including international action (such as changes to the model double tax treaties, and entry into other international agreements) as well as domestic law changes (including in Australia proposed country-by-country reporting rules for example: see Minter Ellison: Multinational anti-avoidance law and country-by-country reporting introduced).  For effective tax risk governance, it is important for multinational Boards to be aware of and to proactively respond to the OECD's recommendations and the jurisdictional and domestic responses to those recommendations.

In this Tax Alert we provide a high level overview which outlines the main recommendations made by the OECD in each of its final papers on each action item.  A further Alert will follow shortly outlining announcements or actions taken to date by Australia in respect of these measures.

For further detail, including:

  • access to all of the OECD Papers issued on each action item;
  • access to Minter Ellison's more detailed commentary as to how these proposals might affect you, and
  • access to the Australian Government's reaction to date

see: Minter Ellison: Tracking the changes to Base Erosion and Profit Shifting.

Summary of the OECD's BEPS Papers

Click here to view table.