Base Erosion and Profit Shifting (BEPS)

BEPS Preparation and Compliance

In response to tax planning and avoidance strategies used by multinational companies, the Organisation for Economic Co-operation and Development (OECD) published 15 action plans that contain policy recommendations for tax authorities to address BEPS and increase tax transparency. As countries adopt the recommendations, multinational companies will face complex data gathering, segmenting, and processing challenges in order to maintain compliance with global tax rules. The OECD's overall goal for BEPS includes:

  • Increase transparency and cooperation on tax issues by member countries
  • Restrict aggressive international tax planning by multinationals
  • Standardize transfer pricing documentation requirements
  • Align local country profits with functions and value creation

BEPS will require companies to gather and report substantially more information than previously. As more countries adopt the BEPS recommendations, this will significantly increase the burden on multinationals to comply with global transfer pricing requirements.

Establishing a consistent internal process will help companies to minimize the administrative burden, increase the efficiency of data gathering, and ensure a high level of accuracy for new requirements, such as the CBC Report. Planning ahead may lower the risk of examination by tax authorities and reduce the burden of responding to inquiries.

Crowe Can Help You Establish Processes for BEPS Recommendations

Crowe continuously monitors BEPS developments, and our international tax specialists can help you evaluate BEPS requirements.

Customer-Focused Services From International Tax Experts

Our specialists advise on the tax implications of BEPS and local requirements as well as manage inquiries from international tax authorities. Work with a senior-level team of responsive, focused specialists who provide deep industry knowledge, global coverage, and technical expertise to help support smart tax decisions.

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Barry T. Freeman