OECD/G20 moves against tax avoidance by multinationals

The OECD will present the latest developments in the OECD/G20 project to combat base erosion and profit shifting (BEPS) by multinational enterprises during a G20 Finance Ministers meeting on early next week (9th/10th February) in Istanbul.

OECD and G20 countries have agreed three key elements that will enable implementation of the BEPS Project: a mandate to launch negotiations on a multilateral instrument to streamline implementation of tax treaty-related BEPS measures; an implementation package for country-by-country reporting in 2016 and a related government-to-government exchange mechanism to start in 2017; and criteria to assess whether preferential treatment regimes for intellectual property (patent boxes) are harmful or not.

“These are important steps forward, which demonstrate that progress is being made toward a fairer international tax system,” explains OECD Secretary-General Angel Gurría. “These decisions signal the unwavering commitment of the international community to put an end to base erosion and profit shifting, in line with the ambitious timeline endorsed by G20 leaders.”