The biggest shake-up in international tax rules in a generation is here
The Organisation for Economic Co-operation and Development (OECD) is set this week to unveil a radical overhaul of international taxation. According to our latest International Business Report (IBR), a quarterly survey of 2,580 businesses in 35 economies, 74% of businesses would welcome more global cooperation and guidance from tax authorities.
They'd like to know what's acceptable and unacceptable tax planning, even if this provided less opportunity to reduce tax liabilities. So will the Base Erosion and Profit Shifting (BEPS) Action Plan result in a tax system that's fairer, more efficient and more understandable? What are the risks and opportunities that may arise?
The recommendations have been born out of the increasing public and political furore over corporate taxation. The main aim is to get countries to collaborate more closely on eliminating controversial loopholes in the international tax system. But as tax becomes an ever more public and emotive issue, the remit now touches almost every area of international taxation.
For the Channel Islands
Yes we will be affected. Both islands Tax Offices are considering how to implement at least part of the BEPs Plan, taking account that some is not relevant to our tax regimes as well as liaising with both the UK and the OECD as to how much they expect of us. Whilst not having any local tax consequences those involved with international structures could be, especially captives and large trading groups. Funds should be carved out.