OECD BEPS - The 2015 Final Reports and the next step

On 5 October, the OECD has issued the Final Reports on the BEPS 15 Action points and it is expected that the G20 Finance Ministers will discuss and endorse the Reports and the recommended changes at their meeting on 8 October, in Lima, Peru. It is undeniable that the BEPS Action plan will dramatically reshape the existing international tax rules. The OECD/G20 Base Erosion and Profit Shifting (BEPS) Project provides governments with solutions for closing the gaps in existing international rules that allow corporate profits to ‘disappear’ or be artificially shifted to low/no tax environments, where little or no economic activity takes place.

In the next few months, we will see both global impact of the Final Package (via amendments of the OECD Model Tax Treaty, Transfer Pricing Guidelines and the Multilateral Instruments) and unified actions from countries. Moreover, we might see how tax authorities will use the Final package to challenge existing arrangements, transactions and business.

The policy formulation stage of this work will be concluded by the end of this year and further work is expected in the close future.

The following blog article analyses the 15 Action Points:

To read the full article, please click here.

OECD BEPS - The 2015 Final Reports and the next step

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Anthony Tam Senior Advisor, Tax Advisory Services Hong Kong