Expect work on the OECD's base erosion and profit shifting initiative (BEPS) to move quickly and include a fundamental rethinking of international tax principles, practitioners said during a February 27 Ernst & Young LLP webinar.
BEPS was the subject of a detailed OECD report presented to the G-20 finance ministers ahead of their February 15 session in Moscow. In the report, the OECD pledged to quickly create an action plan to address key "pressure areas" in international taxation that are a source of profit shifting. The OECD also called for increased transparency of multinational corporation tax rates.
Barbara Angus of Ernst & Young said the initiative is likely to move at a "fairly accelerated timetable" compared with other OECD initiatives, given the high level of government interest. The OECD expects to complete its action plan by June for approval by the Committee on Fiscal Affairs, with public release in July to coincide with an upcoming G-20 meeting, she noted. Angus said she expected that public release of future BEPS work will likely dovetail with future meetings of the G-20 and G-8.
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