The G20 leaders' Mexico summit of June'12 crafted the term 'Base Erosion & Profit Shifting' with an objective to prevent country's tax base getting eroded as a result of tax planning strategies adopted by Multinational Enterprises (MEs). Most MEs dubbed BEPS as a political reaction to growing public ire over tax planning rules, though, surely it resulted in mounting pressure on fiscal policy makers to pressurise MEs to pay 'fair share of tax' beyond the statutory tax . In response thereto, the OECD at the behest of G20 Finance Ministers unveiled an ambitious proposal last month to reform the current patchwork of international tax rules and treaties. The report titled OECD BEPS plan calls for a fundamental change in rules for taxability of cross-border profits and digital transactions.
Source : Business Standard
No comments:
Post a Comment