Tracking the changes to base erosion and profit shifting

In July 2013, the Organisation for Economic Cooperation and Development (OECD) released the Action Plan on Base Erosion and Profit Shifting (‘BEPS Action Plan’). The BEPS Action Plan sets out 15 actions and further work required to counteract the methods of base erosion and profit shifting (BEPS) used by multinational companies, which the OECD identified in its February 2013 report, ‘Addressing Base Erosion and Profit Shifting’ (‘BEPS Report’). The BEPS Report highlighted the available evidence on the existence and magnitude of BEPS in the global economy.

Australia will chair the G20 from 1 December 2013 to 30 November 2014 and host the G20 discussions in November 2014. The G20 finance ministers have clearly signalled the need for global co-operation to counteract BEPS and their political endorsement of the BEPS Action Plan. We expect that BEPS will be at the forefront of the G20 agenda and discussions in 2014. Already the Australian treasurer Joe Hockey has signalled Australia’s willingness to show leadership on this issue.

Keeping track of the rapid and inter-related changes and developments in the BEPS Action Plan both in terms of the OECD’s publications and domestic tax proposals can be a real challenge for business…

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