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Exactly five years ago, the OECD-G20 BEPS final reports were published, and the international tax world changed forever. Today, we @TaxNotes take a look at four elements of that project and where things stand.
First up: Action 1. I had the huge task of recapping efforts to address the tax challenges of the digitalization of the economy, so I focused on the events leading up to pillar 1, and the evolution of the US position in ongoing talks. https://www.taxnotes.com/tax-notes-today-international/digital-economy/beps-5-years-later-action-1-and-quest-tax-digital-activity/2020/10/05/2d0lg
The concluding chapters of action 1 are still being written--watch this space on October 12 when the OECD publishes its draft blueprints for pillars 1 and 2.
(Special thanks to @rescobarstack and Brian Jenn, who represented the US during the BEPS project's formulation and in the inclusive framework, for sharing their reflections and insights)
Next, @ryanmfinley gives us the rundown on actions 8-10. The takeaway? The report may have updated the OECD’s guidance from a technical standpoint, but it's doubtful that it provides the basis for a globally consistent approach to transfer pricing. https://www.taxnotes.com/tax-notes-today-international/transfer-pricing/beps-5-years-later-still-no-convergence-transfer-pricing/2020/10/05/2d0jz
The transparency aspects of the BEPS project (action 13, country-by-country reporting and action 5, harmful tax practices) along with the common reporting standard, have proven to be game changers in international tax, writes @KiarraStrocko. https://www.taxnotes.com/tax-notes-today-international/base-erosion-and-profit-shifting-beps/beps-5-years-later-tax-transparency-global-norm/2020/10/05/2d0jb
Last, but not least, Annagabriella Colón takes a closer look at action 15, the multilateral convention, which implements the treaty aspects of the BEPS project. The MLI won't be used to implement any pillars, but could offer inspiration. https://www.taxnotes.com/tax-notes-today-international/treaties/beps-5-years-later-practitioners-give-mlis-effectiveness-mixed-reviews/2020/10/05/2d0jw
Now, we're on to the 2nd phase of the BEPS project, with two pillars that "could represent a milestone in multilateral coordination of international tax rules," writes @InternationlTax. Essential reading ahead of the Oct 12 release of the P1/P2 blueprints: https://www.taxnotes.com/tax-notes-today-international/digital-economy/oecd-pillars-bretton-woods-moment/2020/10/05/2d0jg
And here's Rick Minor for @TaxNotes, taking a closer look at what the plan could be for winding down unilateral measures, like digital services taxes, as part of pillar 1. https://www.taxnotes.com/tax-notes-today-international/digital-economy/oecd-draft-blueprint-includes-coordinated-end-dsts/2020/10/05/2d0dn
A final note to cap off the thread: I understand there will be an OECD Tax Talk scheduled for October 12, focusing on the pillar 1 and pillar 2 blueprints. Mark your calendars! The BEPS project story is not yet finished.
And there it is. See you all next Monday! https://twitter.com/oecdtax/status/1313146499761688579
