What is the OECD Beps initiative?

What is the OECD Beps initiative?

Base erosion and profit shifting (BEPS) refers to tax planning strategies used by multinational enterprises that exploit gaps and mismatches in tax rules to avoid paying tax. Developing countries’ higher reliance on corporate income tax means they suffer from BEPS disproportionately.

What triggered the OECD Beps project?

There is a growing concern with respect to the serious losses of tax revenues due to BEPS. These hurdles resulted in the launch of the BEPS project by the Organisation for Economic Co-operation and Development (OECD). OECD has designed a 15 point action plan for tackling this problem of shifting profits.

When did the OECD Beps project start?

2013
In 2013, the BEPS project was launched by the OECD and G20 countries. Since then, significant work has been done to address behavior by multinational corporations that can result in low rates of taxes paid.

What are the four BEPS minimum standards?

The BEPS Associates committed to the four minimum standards, namely countering harmful tax practices (Action 5), countering tax treaty abuse (Action 6), transfer pricing documentation and country-by-country (CbC) reporting (Action 13), and improving dispute resolution mechanisms (Action 14).

What is OECD G20?

What is the G20? The G20 is an international forum, made up of 19 countries and the European Union, representing the world’s major developed and emerging economies. Together, the G20 members represent 85 % of global GDP, 75% of international trade and two-thirds of the world’s population.

What is beps2?

Overview: The OECD’s Base Erosion and Profit Shifting Project (BEPS) aims to secure and sustain the international tax system and increase tax equity among traditional and digital businesses. These would be wide ranging and could have an impact on both asset management businesses and investment funds.

Which country holds the presidency of G20 in 2021?

2021 Italian Presidency As of December 2020 Italy has assumed the Presidency of the G20, which culminated in the Summit of Heads of State and Government (October 30th and 31st 2021). Read the G20 Rome Leaders’ Declaration.

What is BEPS 15 action plan by OECD?

BEPS Actions Developed in the context of the OECD/G20 BEPS Project, the 15 actions set out below equip governments with domestic and international rules and instruments to address tax avoidance , ensuring that profits are taxed where economic activities generating the profits are performed and where value is created.

What is the inclusive framework on BEPS?

Inclusive Framework on BEPS. The Inclusive Framework on BEPS (Inclusive Framework) is primarily concerned with reviewing the implementation of the minimum standards agreed in the BEPS project. The aim of the review is to achieve a global level playing field in terms of tax competitiveness.

What is BEPS 2.0?

BEPS 2.0 is an historic opportunity to put a stop to damaging tax competition and corporate tax avoidance, and to build a fairer tax system that works for the benefit of all people and not just a fortunate few.