Major Governments Cracking Down on Global Tax Avoidance

Major Governments Cracking Down on Global Tax Avoidance Last month the OECD/G20 issued their first 7 (out of an identified 15) reports to tackle “BEPS” – broadly, seeking to prevent multinationals avoiding tax by shifting profits to low, or no…

News17th Oct 2014

By Sarah Simpson

Major Governments Cracking Down on Global Tax Avoidance

Last month the OECD/G20 issued their first 7 (out of an identified 15) reports to tackle “BEPS” – broadly, seeking to prevent multinationals avoiding tax by shifting profits to low, or no tax, jurisdictions, often through complex schemes. Arguably, the most important report of general application is that on Transfer Pricing. Its main focus provides a requirement for multinationals to provide ‘Country by Country’ financial reporting to its home tax authority (e.g. Turnover, Profits, Taxes paid). The tax authority will then share this information globally. The OECD/G20 wishes to address all 15 Actions by the end of 2015, thus we have no doubt that many clients will be impacted by the new requirements on Transfer Pricing, and possibly the other 14 Actions being addressed, in the not too distant future.

For more information contact Andrew Shaw, Tax Senior Manager, andrew.shaw@aab.co.uk

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