OECD Report Addressing Base Erosion And Profit Sharing, Alfonso Garrido Picon
Following concerns expressed by the French, German and UK Governments
about the use of Base Erosion and Profit Sharing schemes (“BEPS”) by
multinational companies, the Organisation for Economic Co-operation and
Development (“OECD”) has published a report detailing the pertinent issues
involved.
Fundamentally, the report argues for greater international taxing powers to
be given to governments around the world to generate more tax revenues
from multinational companies and to combat the abuse of BEPS by
multinational companies. Alfonso Garrido Picon
What Is BEPS?
The OECD define BEPS as “…tax planning strategies that exploit loopholes in
tax rules to make profits disappear for tax purposes or to shift profits to
locations where there is little or no real activity but where they are lightly
taxed, resulting in little or no overall corporate tax being paid”.