Are companies paying their 'fair share' of tax? KPMG addresses the Base Erosion and Profit Shifting (BEPS) debate.
Are companies paying their 'fair share' of tax? KPMG addresses the BEPS debate.
Societal concern about companies paying their 'fair share' of tax has provoked robust debate, and sharpened the impetus for reform of the international tax rules leading to an OECD-G20 Action Plan for Base Erosion and Profit Shifting (BEPS).
In October 2015, the OECD released final reports for a wide number of measures including Country-by-Country reporting and changes to international tax treaties.
On 7 June 2017 the BEPS Project realised a major milestone with the signing of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (the Multilateral Instrument, or MLI). Australia, along with 66 other countries, has signed the MLI, which intends to provide a simplified mechanism for implementation of the BEPS program which does not involve laborious negotiation of each treaty.
In addition Australia has unilaterally enacted a Multinational Anti-Avoidance Law and a Diverted Profits Tax. Other measures have involved a Tax Transparency Code, and a significant increase in penalties for large companies.
How we can help
Summary of key elements in the September papers published by the OECD-G20 on BEPS.