Base Erosion Profit Shifting – Introduction

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..... esent a significant proportion of global GDP. According to the OECD, around 60% of the world takes place also within MNEs Also, the increasing significance of the service component of the economy, and of digital products which are deliverable over the Internet, has made it much easier for businesses to locate many productive activities in geographic locations that are distant from the physical loc .....

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..... her cost. Moreover, BEPS undermines the integrity od the tax system, as reporting of low corporate taxes is considered to be unfair. The G-20 mandated the OECD to address the issue of tax avoidance. The OECD followed it up with publishing draft Action Plan on Base Erosion Profit Shifting. The BEPS action plan identifies fifteen actions to address BEPS in a comprehensive manner and sets a deadli .....

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..... hould ideally relate to both income and the economic activity that generates. Concerns in the area of transfer pricing should be addressed within the prevalent system. Improving Transparency and tax certainty. Greater transparency and improved data Pre-requisites to evaluate the impact and magnitude of BEPS. Taxpayers to report their aggressive tax planning arrangements .....

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