The OECD will today publish its first recommendations for a co-ordinated international approach to combat tax avoidance by multinational enterprises under the OECD/G20 Base Erosion and Profit Shifting (BEPS) Project. Meanwhile there is already evidence in Europe that the confluence of massive tax avoidance and increased concerns about privacy is fanning a blowback against the dominance of big US tech companies.
Update: OECD proposes biggest reform of global business tax rules since 1920s
In Australia research commissioned by advocacy group Tax Justice Network, in advance of a meeting of G20 finance ministers and central bank governors in Cairns next week, shows that a survey of 1000 people found that there is widespread support to make corporate tax in Australia more transparent.
Nine out of 10 voters believed it was unacceptable for foreign multinationals to operate in a country and not pay any taxes, even if they were abiding by the law.
The Sydney Morning Herald reports that companies such as Apple, Google, IKEA, and Glencore have been accused of deliberately reducing their tax bills in Australia by relocating profits overseas.
Almost two thirds of people surveyed said they felt negative about companies such as Apple for using loopholes to avoid tax and there was also increasing support for rules to be tightened at the G20 summit.
Joe Hockey, Australia's federal treasurer (finance minister), warned last week that the government would not stand "idly by" while big companies shirk their responsibility to pay tax.
He demanded that the Commissioner of Taxation "double his efforts" to crack down on companies considered a risk to the tax system.
Angel Gurría, OECD secretary general, will present the first BEPS deliverables with Pascal Saint-Amans, director of the Centre for Tax Policy and Administration, during a press conference beginning at 2:00pm (CET/ 1:00pm Irish time) at OECD headquarters in Paris.
The news conference will be streamed LIVE at: video.oecd.org.
A technical briefing via webcast on the BEPS deliverables will follow, at 4:00 p.m. (CET). To register for this webcast, go to: www.oecd.org/tax/beps.htm
The BEPS Project aims to provide governments with clear international solutions for fighting corporate tax planning strategies that exploit gaps in existing rules and allow profits to ‘’disappear’’ or shift to low/no-tax locations. OECD work is based on a BEPS Action Plan endorsed by the G20 in July 2013, which identified 15 key areas to be addressed by 2015.
The first set of BEPS deliverables will be presented to the G20 meeting of finance ministers on 20-21 September in Cairns, Australia. The instruments and reports relate to:
- The Tax Challenges of the Digital Economy
- Hybrid Mismatch Arrangements
- Harmful Tax Practices
- Tax Treaty Abuse
- Transfer Pricing & Intangibles
- Transfer Pricing Documentation and Country-by-Country Reporting
- The Feasibility of Developing a Multilateral Instrument on BEPS
Submission to Department of Finance consultation on corporation tax reform
OECD BEPS Project: Ireland should embrace corporate tax reform - - includes analysis of underperforming indigenous tradable sector.
Irish corporate tax policy like property bubble driven by short-term interests
IMF explains “Double Irish Dutch Sandwich” tax avoidance
US company profits per Irish employee at $970,000; Tax paid in Ireland at $25,000