Volume 44 (2016) / Issue 10
To decrease uncertainty and the risk of juridical double taxation, base erosion and profit shifting (BEPS) must be implemented and administered in a uniform way globally. Unfortunately, the European Union (EU) countries have embarked on a diverting path, with additional measures taken and with their own interpretation of some BEPS action points. The Directive (Anti-Tax Avoidance Directive) is furthermore a minimum standard for individual countries to be adjusted as individual Member States see fit. In the United States, on the other hand, there is considerable hesitation to introduce measures not already enacted earlier. Many countries in Asia have adopted a wait and see approach. The new and clarified rules of how to split taxable profit between countries will also be used in administrative procedures like state aid investigations in the EU. The Organisation for Economic Cooperation and Development (OECD), at request of Group of Twenty (G20), is aiming for uniformity but faces a tremendous challenge. An increase in tax disputes between countries is to be expected.
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