Global tax rules are changing, and changing rapidly. The final reports on the Base Erosion and Profit Shifting (BEPS) Action Plan have been released by the Organisation for Economic Cooperation and Development (OECD) and endorsed by the G20. These reports on the 15 BEPS Action Points recommend significant changes in international tax laws and treaties. Due to the unique global alignment on the matter, BEPS is the most comprehensive change in international taxation in history. Attention has turned to the actions that are being taken by countries in response to these recommendations.
To succeed in this new, riskier environment, it's critical to know how change will affect you. Our EY tax professionals will examine the impact of BEPS on key business functions and processes in the following nine chapters, addressing the various aspects of your global enterprise which may be affected by these changes.
This guide will provide readers with practical guidance on how to handle the implications of BEPS. Your approach to financing may have to change and your treasury function needs to be ready. Or, you may need to alter your operating model, as both multilateral and unilateral tax reforms will affect global business models and increase scrutiny of your business's tax affairs. All company stakeholders need to be ready for more transparency. Global tax reforms could affect the value and structure of M&A deals; tax changes in relevant markets must be part of your due diligence. This shows that the impact of BEPS is broader than tax.
The demand for more tax transparency is building and you will soon be required to report information on what your business earns, and how much tax it pays, by country. That global information will be shared between governments and tax authorities, giving them new insight into your global footprint.
There are even calls to require public disclosure on this information. While this 'public' element of country-by-country reporting was not part of the final OECD recommendations, the European Commission is devoting additional time to assessing the merits of making such information public, as is being called for by many non-governmental organisations.
Are you prepared? The right strategy, processes and technology can help you manage this change.
We trust that this guide, BEPS Is Broader Than Tax: Practical Business Implications of BEPS, will provide you with deeper, practical insights into these complex topics and we hope you will enjoy reading it.
EY partner - EMEIA ITS leader
EY partner - EMEIA TP leader