An initial meeting was held in Kyoto on 30 June and 1 July 2016 to take forward the new inclusive framework for tackling base erosion and profit shifting (BEPS). Delegates representing more than 80 countries at various stages of development participated in the meeting that takes the OECD/G20 BEPS project a stage further. The countries involved in the inclusive framework have an opportunity to participate in the decision making and the technical working groups of the OECD’s Committee on Fiscal Affairs (CFA) and thereby provide input into the formulation of new international tax rules to counter BEPS.
The participating countries began work on standard setting on the remaining issues under BEPS in areas such as transfer pricing and interest deductibility. Practical guidance will be developed to support consistent global implementation of BEPS recommendations. The inclusive framework will focus particularly on implementing the four minimum standards on BEPS issues. These are standards on harmful tax practices; tax treaty abuse; country by country reporting; and dispute resolution mechanisms. Progress on implementing the minimum standards will be subject to a peer review process and there will be a monitoring process for other parts of the BEPS package.
International and regional organizations are also participating in the inclusive framework. The meeting included a session with representatives of business and civil society who gave their own perspectives on the BEPS project.
