Restoring integrity of tax systems – a taxing crossroad
Restoring integrity of tax systems- a taxing crossroad
It may be argued that the OECD Action Plan on Base Erosion and Profit Shifting( BEPS) has two main complementary objectives:
The first main objective is the elimination of international tax avoidance and evasion schemes( specifically those labelled as“ aggressive”) that thrive on identifying and exploiting the legal opportunities available to multinational enterprises. This objective, apart from its multilateral scale and scope, is not completely new. Countries have always been quick to close tax loopholes whenever they have been identified, just as tax advisers and taxpayers have been quick at identifying and exploiting them. The second main objective of the Action Plan on BEPS is to restore integrity in tax systems. According to the Action Plan, base erosion and profit shifting undermines the integrity of the tax system because“ the public, the media and some taxpayers deem reported low corporate taxes to be unfair”.
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