What are the OECD’s base erosion and profit shifting (BEPS) initiatives?
The financial crisis of 2008/2009 resulted in many international revelations around tax evasion and aggressive tax planning, and as a result, G20 countries and the Organisation for Economic Co-operation and Development (OECD) came together to address these issues through BEPS 1.0, published in 2015, and the Inclusive Framework on BEPS, established in 2016.
Fast forward to today, the BEPS 1.0 initiatives have lead to BEPS 2.0, which focuses on the challenges faced by the digitalization of the economy. With a purpose of consolidating unilateral efforts into a global consensus position, the BEPS 2.0 project assists in avoiding misaligned unilateral efforts and double taxation, while also aiming to ensure that multinational enterprises pay a fair share of tax wherever they operate (i.e. a global minimum corporate tax rate that countries can use to protect their tax bases).
Want to know more? Find out through the slip-sheet below.