BEPS Tackling Tax Avoidance Strategies

How can BEPS impact my organization?

The Organisation for Economic Co-operation and Development (OECD) has the mission to promote policies that will improve the economic and social well-being of people around the world. The organization has some projects going on, and one of them which we will focus on, is "Base Erosion and Profit Shifting", best known for BEPS. The initiative refers to tax avoidance strategies that identifies gaps in tax rules that could shift profits to low or zero tax locations. Under the inclusive framework, over 100 countries and jurisdictions are collaborating to implement the BEPS initiative. This means that this initiative persue to reduce or close gaps in international taxations for companies that allegedly reduce or avoid taxation in their home country, by moving operations or implementing different strategies depending on each case.

The OECD has issued 15 action items to express the main areas where companies have been most aggressively accomplishing this shift of profit, regarding digital economy, transfer pricing documentation, etc. This 15 action items were developed in the context of the OECD/G20 BEPS Project, set out by team governments with domestic and international instruments to address tax...