New Global Tax Rules Clamp Down on Multinational Tax Avoidance

Clayton & McKervey

On Monday, October 5, the Organization for Economic Cooperation and Development  (“OECD”) released their final package of measures to clamp down on multinational corporate tax avoidance.  Most developed and many developing countries will be adopting many, if not all, of the OECD’s new international tax reforms.

The OECD Base Erosion and Profit Shifting (“BEPS”) project deliverables incorporate 15 programs to assist tax authorities in combating many tax planning strategies.  Most notably, this agreement includes more thorough transfer pricing requirements, new restrictions to prevent tax treaty abuse, a change in permanent establishment rules, and additional tools to prevent “other harmful tax practices.”

Additional information on the OECD’s BEPS program may be found at https://www.oecd.org/ctp/beps-about.htm