OECD BEPS Action Plan
It has now been four years since the Organisation for Economic Cooperation and Development (OECD) published its project recommendations on Base Erosion and Profit Shifting (BEPS). The EU has taken a clear lead, with strong political momentum not only pushing progress, but pressing Member States to police existing measures much more forcefully.
For businesses, the most important consequence of the BEPS measures is the need for behavioural change, at all levels. Building on media pressure, many tax administrations not only introduce tougher measures and seek to restrict tax treaty benefits, but also challenge more and more often any arrangements that, in their view, lack real substance or a truly commercial principal purpose. Greater transparency is the other main theme of the BEPS Project. This of course brings with it new reporting obligations - for example with country-by-country reporting (CbCR) - and organisations must be comfortable that they have systems in place to comply.
The matrix below can help you navigate through the different BEPS action plans as well as the state of play of the measures resulting from each plan.