Today (October 5, 2015), the Organisation for Economic Cooperation and Development (OECD) released their Base Erosion and Profit Shifting (BEPS) outcomes, which are proposals for new rules to combat tax avoidance by transnational companies.
The G20 leaders had tasked the OECD to work to address base erosion and profit shifting, based on the 2013 G20/OECD BEPS Action Plan, which identified 15 actions to put an end to international tax avoidance. These outcomes will be presented to the G20 Finance ministers meeting in Lima, Peru on Thursday 8 October 2015.
The BEPS Monitoring Group (BMG), a network of independent researchers on international tax, which was established to monitor the BEPS Action Plan for the reform of the taxation of multinational corporations has consistently tracked the process, and has commented on all the many discussion drafts and proposals.
It has now prepared a General Evaluation of the final package of the BEPS project, largely based on those analyses, taking into account in particular how the proposals will affect developing countries. Read the full report and the Media Release here.
Prof. Sol Piccioto (pictured), ICTD researcher and BMG Coordinator had this to say,"The OECD's 2-year project on Base Erosion and Profit Shifting (BEPS), aiming to reform the international tax system, has been a mammoth task. This is the first comprehensive reconsideration of the system since it was designed over 80 years ago. Although the proposals in the final reports show that much has been achieved, it is also clear that much remains to be done. This will include not only supervising and assisting implementation by states, but also continued work on some key issues, especially the implications of the digitalised economy, and principles for attribution of profits”.