The BEPS Monitoring Group

Country by Country Reporting

We have made a submission to the consultation by the OECD on behalf of the Inclusive Framework for BEPS, for its review of the system of Country by Country Reporting (CbCR).

While we welcome the establishment of the system, we note that very few developing countries have yet received any reports, and are concerned that instead of being an effective transparency measure it is being used to discipline how countries apply their own tax rules. It’s now time to require publication of CbCRs, which do not contain commercially confidential information, and improvements to the template should not change this. Key improvements include revision of the definition of a Constituent Entity to include all activities that may create taxable presence, and clarification that tax paid should refer to the country that receives the tax.

BEPS Monitoring GroupMarch 7, 2020Comment

The Proposed Global Anti-Base Erosion Tax

We have made this submission to the OECD on the consultation for a global minimum tax, proposing a design based on a formulaic substance rule, which would be much easier to administer than the current proposal.

Action 5, minimum tax, Unitary TaxationBEPS Monitoring GroupDecember 3, 2019tax competition, unitary taxationComment

Toolkit for Transfer Pricing Documentation

We have submitted these comments on the draft Toolkit prepared by the Platform for Collaboration on Tax to support the successful implementation by developing countries of effective Transfer Pricing Documentation requirements.

BEPS Monitoring GroupNovember 14, 2019Comment

OECD Secretariat Proposals for a 'New Taxing Right'

Summary

We welcome the attempt in these proposals to address the mandate of the G20 leaders for the BEPS project, to devise rules that can ensure that multinational enterprises (MNEs) pay tax in line with their activities in each country.

BEPS Monitoring GroupNovember 13, 2019Comment

International Corporate Tax Reform and the 'New Taxing Right'

Negotiations in the BEPS project are now reaching a crucial stage, with an intensification of work to revise the basic principles of international tax. This report aims to analyse the various proposals involved, putting forward our own suggestions, and also to explore some unilateral measures that may be considered by developing countries.

BEPS Monitoring GroupSeptember 11, 2019 Comment

What is Driving Tax Morale?

We have submitted comments, available here, to the OECD on a document issued for public consultation on this subject.

We are surprised that this draft ignores the issue of tax fairness, which is central to tax morale. We also consider it inappropriate to include the data from an earlier survey of business attitudes towards tax certainty, and suggest other sources of evidence about business motivations towards paying tax would be more appropriate.

BEPS Monitoring GroupMay 17, 2019Comment

India Proposal for Amendment of Rules for Profit Attribution to a Permanent Establishment

We have submitted comments on the proposal from India’s Central Board of Direct Taxes to amend the rules on attribution of profits to a permanent establishment, available here.

We commend the CBDT on this proposal, that would introduce a fractional apportionment method for allocation of MNE profits, and provide simplicity, predictability and fairness. Our comments include suggestions for complementing these measures with strengthening of the profit split method for allocation of MNE profits to subsidiaries. This approach offers a roadmap for comprehensive reforms currently debated internationally.

BEPS Monitoring GroupMay 17, 2019Comment

Tax and Payments to Governments

We have made a submission to the Global Sustainability Standards Board on their proposed standard on Tax and Payments to Governments, available here.

The standard is very similar to the template for Country-by-Country reporting developed for the G20/OECD BEPS project. Once adopted, it would enable multinational enterprises to make their reports public, thus greatly improving tax transparency.

BEPS Monitoring GroupMarch 11, 2019Comment

Addressing the Tax Challenges of Digitalisation of the Economy

We propose a combination of principles and pragmatism that will provide (i) results that are fair to both taxpayers and tax authorities, and (ii) true simplicity of application.

BEPS Monitoring GroupMarch 10, 2019 Comment

Monitoring measures to end base erosion and profit shifting by transnational corporations

Summary