The OECD released its first recommendations on 16 September 2014, for a coordinated international approach to combat tax avoidance by multinational enterprises under Action Plan on Base Erosion and Profit Shifting.
The recommendations provide the illustrative report and an overview of the seven BEPS reports delivered in 2014. It describes the context for the BEPS project and outlines the process for the work to date. It also describes the status of the 2014 reports in the context of the overall BEPS project, including remaining technical issues and potential interaction with the remaining BEPS work. Finally, it outlines the next steps for the BEPS work.
The recommendations published relate to:
- The tax challenges of the digital economy.
- Hybrid mismatches arrangements.
- Harmful tax practices.
- Tax treaty abuse.
- Transfer pricing and transfer pricing documentation and country-by-country reporting and
- The feasibility of developing a multilateral instrument on BEPS.
Following this announcement, the first set of BEPS deliverables will be presented to the G20 Meeting of Finance Ministers and Central Bank Governors in Cairns, Australia on 20 September 2014.
