Addressing base erosion and profit shifting is a top priority for governments around the world. In 2013, OECD and G20 countries adopted a 15-point action plan to tackle base erosion and profit shifting on an equal footing. In addition to securing revenues by reorienting taxation towards economic activities and value creation, the OECD/G20 BEPS project aims to create a unified set of consensual international tax rules to combat base erosion and profit shifting to protect tax bases while providing greater certainty and predictability for taxpayers. In 2016, the OECD and the G20 established an inclusive framework for BEPS, allowing interested countries and countries to work with OECD and G20 members to develop standards on BEPS issues and to review and monitor the implementation of the entire BEPS package. More than 100 countries and jurisdictions have signed on to the Inclusive Framework. With the adoption of Council Directive (EU) 2018/822 by EU Member States, there has been significant acceptance in jurisdictions that now have binding disclosure requirements. This Directive will lead to the reporting to EU tax authorities of aggressive cross-border tax planning schemes, offshore structures and tax avoidance schemes covered by the Common Reporting Standard. The Guideline adopts the Model Rules of the 2018 OECD Report Model Mandatory Disclosure Rules for CRS Avoidance Agreements and Opaque Offshore Structures. Action 12 provides an overview of mandatory disclosure regimes and makes recommendations for a modular design of a mandatory disclosure system, including recommendations on registration rules for international tax systems. The project aims to establish a standard framework for a mandatory disclosure regime that ensures consistency while providing sufficient flexibility to address country-specific risks and allow tax administrations to control the amount and type of disclosure. The ICC speaks authoritatively on behalf of businesses in all sectors in all regions of the world, noting that while OECD recommendations generally reflect current best practice, some of the proposed recommendations are problematic. BEPS Action 12 provides recommendations for designing rules that require taxpayers and advisors to disclose aggressive tax planning schemes.
These recommendations seek to balance the need for timely information on aggressive tax planning schemes with the requirement that disclosure be appropriately targeted and enforceable and avoid an undue compliance burden on taxpayers. It is important that each country receives timely information on tax compliance and the strategic risks posed by aggressive tax planning. Action 12 provides recommendations on the design of disclosure requirements for aggressive tax planning schemes, taking into account administrative and compliance costs for tax administrations and businesses, and drawing on the experience of countries that have implemented such rules. The Action 12 Report also includes specific recommendations on rules for international tax systems and the development and implementation of more effective information exchange and cooperation between tax administrations. Base erosion and profit shifting (BEPS) refers to tax planning strategies that exploit gaps and divergences in tax regulations to artificially shift profits to low- or zero-tax locations where there is little or no economic activity, resulting in little or no corporate income tax paid overall. The OECD`s 2015 Report on Mandatory Disclosure Requirements provides a modular framework for countries to design a disclosure system that meets their need for early information on potentially aggressive or abusive tax planning systems, as well as advocates and users of these systems. If a country wishes to introduce mandatory disclosure requirements, the recommendations provide the flexibility to balance a country`s need for better and more up-to-date information with the compliance burden on taxpayers. A public consultation meeting on Action 12 will take place on 11 May 2015 at the OECD Conference Centre in Paris from 10:00 to 16:30 CET.
The meeting will be streamed live via video.oecd.org/. ICC provided high-level comments on the OECD`s draft discussion on Action 12: Mandatory Disclosure Rules of the OECD Base Erosion and Profit Shifting (BEPS) Action Plan. The ICC also comments on disclosure thresholds and strongly opposes the use of hypothetical generic identifiers – particularly in the case of premium charges – and strongly cautions against including loss acceleration as the standard for determining whether a loss-making transaction should be disclosed. The ICC is concerned about the OECD`s proposals on international tax systems. For example, the ICC believes that each country should be free to impose binding disclosure requirements and, if a country fails to do so, it should not impose excessive obligations on taxpayers who are not direct parties to a reportable transaction. The lack of timely, comprehensive and relevant information on aggressive tax planning strategies is one of the biggest challenges facing tax authorities around the world. Mandatory disclosure rules can enable countries to respond quickly to tax risks by providing them with quick access to this information. This report provides an overview of mandatory disclosure regimes based on the experience of countries with mandatory disclosure regimes and provides recommendations for a modular framework that can be used by countries wishing to introduce or amend mandatory disclosure rules in order to quickly obtain information on aggressive or abusive tax planning schemes and their users. The recommendations provide the flexibility to balance a country`s need for better and more timely information with the compliance burden on taxpayers. The report also contains specific recommendations on rules on international tax systems and on the development and implementation of more effective exchange of information and cooperation between tax administrations.
If you received this error when you clicked on a URL on our website, please contact us. Click on the following links for the draft discussion and the more than 270 pages of comments received: doi.org/10.1787/9789264241442-en 9789264241442 (PDF) © 2022. For more information, contact Deloitte Touche Tohmatsu Limited. An IPO can take years. We only had weeks. In the series:OECD/G20 Base Erosion and Profit Shifting ProjectSee more securities. Go straight to the clumsiness with daily updates on your mobile device The lack of timely, comprehensive and relevant information on aggressive tax planning strategies is one of the biggest challenges facing tax authorities around the world. This information is essential to enable governments to respond quickly to tax risks through risk assessments, audits or changes to strong legislation or regulations. Living our purpose, reshaping our world, making an impact that matters. Find out what`s happening this week and how it will affect your business Tunisia will sign separate social security agreements with Canada and the province of Quebec on November 18 and 20, 2022, respectively.
The ag. Find out how this new reality is coming to fruition and what it means for you and your industry. 4. In May 2015, the OECD published comments on the draft public debate on Base Erosion and Profit Shifting (BEPS) Action 12: Mandatory disclosure rules. The selected page may have been moved or may no longer be available. Published on 05 October 2015Also available in: Spanish, French, Korean How Deloitte helped a large fast food company become a leader in sustainability.