Base erosion and profit shifting: Difference between revisions

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''Tax - anti-avoidance''.
(BEPS).
(BEPS).


Tax payer action that reduces the taxable profit in a jurisdiction, either by recharacterising it or by shifting it to a jurisdiction where it will be taxed at a lower rate or not taxed at all. This is seen by tax authorities as potentially abusive, even if legal.
Tax payer action that reduces the taxable profit in a jurisdiction, either by recharacterising it or by shifting it to a jurisdiction where it will be taxed at a lower rate or not taxed at all.  
 
This is seen by tax authorities as potentially abusive, even if legal.
 
 
''Action Plan on Base Erosion and Profit Shifting'' is a 2013 report from the Organisation for Economic Co-operation and Development (OECD). The outline Action Plan proposals were endorsed by the G20 during their summit in St. Petersburg in 2013.  


Action Plan on Base Erosion and Profit Shifting is a 2013 report from the Organisation for Economic Co-operation and Development ([[OECD]]). The outline Action Plan proposals were endorsed by the [[G20]] during their summit in St. Petersburg in 2013.


The OECD report notes:
The OECD report notes:
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==See also==
==See also==
 
* [[Business in Europe: Framework for Income Taxation]]
* [[Common Consolidated Corporate Tax Base]]
* [[CbC reporting]]
* [[Corporation Tax]]
* [[Corporation Tax]]
* [[Diverted profits tax]]
* [[Double taxation]]
* [[Fixed ratio method]]
* [[Forum on Harmful Tax Practices]]
* [[G20]]
* [[Hybrid mismatch arrangement]]
* [[Organisation for Economic Co-operation and Development]]
* [[Tax avoidance]]
* [[Tax avoidance]]
* [[Transfer pricing]]
* [[Transfer pricing]]
* [[Double taxation]]
* [[Worldwide interest cap]]
 


==Other resource==


==Other links==
*[[Media:2015_10_Oct_-_Walk_the_line.pdf| Walk the line, The Treasurer, 2015]]
* [http://dx.doi.org/10.1787/9789264202719-en Action Plan on Base Erosion and Profit Shifting, OECD Publishing, OECD 2013]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]

Latest revision as of 04:21, 8 February 2024

Tax - anti-avoidance.

(BEPS).

Tax payer action that reduces the taxable profit in a jurisdiction, either by recharacterising it or by shifting it to a jurisdiction where it will be taxed at a lower rate or not taxed at all.

This is seen by tax authorities as potentially abusive, even if legal.


Action Plan on Base Erosion and Profit Shifting is a 2013 report from the Organisation for Economic Co-operation and Development (OECD). The outline Action Plan proposals were endorsed by the G20 during their summit in St. Petersburg in 2013.


The OECD report notes:

  • that modern business practices, the growing importance of the services and 'digital' components of the economy mean that many businesses are geographically distant from their customers and
  • "the increasing sophistication of tax planners in identifying and exploiting the legal arbitrage opportunities and the boundaries of acceptable tax planning".


These, the report says, provide multinational enterprises (MNEs) with more confidence in taking aggressive tax positions giving opportunities for the MNEs to greatly minimise their tax burden.

"The increasing BEPS relates chiefly to instances where the interaction of different tax rules leads to double non-taxation or less than single taxation. It also relates to arrangements that achieve no or low taxation by shifting profits away from the jurisdictions where the activities creating those profits take place."


See also


Other resource