BEPS action plan

Base Erosion and Profit Shifting (BEPS) action plan - what does it mean for you?

The Organisation for Economic Co-operation and Development (OECD) has today unveiled its much anticipated (and long awaited) proposals that will radically overhaul international taxation around the world.

The recommendations have been born out of the increasing public and political furore over the taxation of international businesses. The main aim is to get countries to collaborate more closely on eliminating controversial loopholes in the international tax system. But as tax becomes an ever more public and emotive issue, the remit now touches almost every area of international taxation.
Although the reports have been billed as the 'final' BEPS reports and will be applauded by the G20 at their meetings in Lima this week, the devil is in the detail. This detail will be worked through over the next months and years, and a lot will depend on implementation – or otherwise - by countries themselves.

Here we provide a summary of the announcements for each of the 15 action points and what it could mean for you. More analysis will follow in due course. If you have any questions please do not hesitate to contact your usual Grant Thornton contact or Wendy Nicholls.
Minimum standards were agreed in particular to tackle issues in cases where no action by some countries would have created negative spill overs (including adverse impacts of competitiveness) on other countries. Recognising the need to level the playing field, all OECD and G20 countries commit to consistent implementation in the areas of preventing treaty shopping (Action Point 6), Country-by-Country Reporting (Action 13), fighting harmful tax practices (Action point 5) and improving dispute resolution (Action point 14).

Base Erosion and Profit Shifting (BEPS) action plan - what does it mean for you