Thursday, 28 January 2016

BEPS update: Changes and reactions following the BEPS final reports' release

As we enter the second phase of the OECD-led BEPS project, which covers clarifications (and work left to complete), implementation and monitoring, we reflect on the changes and tax authority reactions following the 5 October 2015 release of the BEPS final reports. Governments and tax authorities have been very active, from both a behavioural and a legislative basis. This includes tax authorities in such countries as the United Kingdom, Australia, China and the United States, among others. Undoubtedly, the BEPS project has already had, and will continue to have, a profound impact for most taxpayers.  
As part of extending the reach of the BEPS project, a 'framework' is to be agreed early in 2016 with involvement -- on an equal footing -- of interested countries and jurisdictions other than OECD members and G20 members.  This will include input from supranational organisations like the UN, IMF and World Bank Group. The OECD and relevant working groups are currently addressing this action, along with other actions that were identified in the BEPS final reports presentation. We consider the framework and also look ahead to what likely will happen throughout 2016 and beyond. Finally, on an individual action-by-action basis, we add insights regarding the various stakeholders' intentions and commitments.
Source & more info: PwC