On 21 January, the Global Tax Policy Team at Mazars (of which William Buck is a representative firm*) has attended to the public consultation meeting, held by the Organisation for Economic Co-operation and Development (OECD) in Paris, representing Mazars’ comments on the Discussion Draft on Action 7 of the Base Erosion and Profit Shifting (BEPS) Action Plan.
Mazars’ International Tax Policy Team welcomes the progress that the OECD has made to date and was very pleased to provide our input on the Discussion Draft. Mazars’ comments are published on the OECD website.
The BEPS Action Plan, containing 15 action points, focuses on tackling aggressive tax planning and tax avoidance by multinational companies, both PIEs and OMBs. Mazars International Tax Policy Team agrees it is vital to arrive at a common set of rules that provide investors with a safe, sound environment and that unilateral action by counties is to be avoided.
Many of the existing rules which protect multinationals corporations from paying double taxation too often allow them to pay no taxes at all. These rules do not properly reflect today’s economic integration across borders, the value of intellectual property or new communications technologies. These gaps, which enable multinationals to eliminate or reduce their taxation on income, give them an unfair competitive advantage over smaller businesses. In the eyes of the pubic, it can negatively impact investment, growth, and employment, and can leave average citizens footing a larger chunk of the tax bill.
The Action 7 of BEPS Action Plan is about preventing the artificial avoidance of permanent establishment status including proposals for changes to the definition of permanent establishment found in the OECD Model (2010). The Discussion Draft sets forth 14 proposed options for modifying the existing PE rules.
For more information about BEPS Action Plan and the separate action points please visit Mazars Tax Policy Blog.
* William Buck has been the representative firm in Australia and New Zealand for Mazars since 2007. Mazars is a global accounting firm represented in 85 countries with 750 partners and 13,500 professional staff.
As a representative of Mazars, we have access to the best technical resources around the world which allows us to provide high quality advice on international aspects of our Australian clients’ businesses.