(April 16, 2015)

On April 16, 2015 the OECD published a Public Discussion Draft on Action 11 of the BEPS Action Plan (Improving the analysis of BEPS). The Discussion Draft is titled: “Public Discussion Draft – BEPS ACTION 11: IMPROVING THE ANALYSIS OF BEPS”.

In this respect the BEPS Action Plan states:

“Improving the availability and analysis of data on BEPS is critical, including to monitor the implementation of the Action Plan. The BEPS report (OECD, 2013a) notes that there are several studies and data indicating that there is an increased disconnect between the location where value creating activities and investment take place and the location where profits are reported for tax purposes. The report noted that further work needs to be done to evaluate such studies, to develop measures of the scale and effects of BEPS behaviours, and to monitor the impact of measures taken under the Action Plan to address BEPS. This should include outcome-based techniques, which look at measures of the allocation of income across jurisdictions relative to measures of value creating activities, as well as techniques that can be used to monitor the specific issues identified in the Action Plan.  Accordingly, it is important to identify the types of data that taxpayers should provide to tax administrators, as well as the methodologies that can be used to analyse these data and to assess the likely economic implications of BEPS behaviours and actions taken to address BEPS.

ACTION 11 

Establish methodologies to collect and analyse data on BEPS and the actions to address it

Develop recommendations regarding indicators of the scale and economic impact of BEPS and ensure that tools are available to monitor and evaluate the effectiveness and economic impact of the actions taken to address BEPS on an ongoing basis. This will involve developing an economic analysis of the scale and impact of BEPS (including spillover effects across countries) and actions to address it. The work will also involve assessing a range of existing data sources, identifying new types of data that should be collected, and developing methodologies based on both aggregate (e.g. FDI and balance of paymentsdata) and micro-level data (e.g. from financial statements and tax returns), taking into consideration the need to respect taxpayer confidentiality and the administrative costs for tax administrations and businesses."

According to a press release issued by the OECD in this respect, the discussion draft sets out the context and background to the work on Action 11, and includes chapters that focus on the following three key areas: 

·        An assessment of existing data sources relevant for BEPS analysis, describing the available data and their limitations for undertaking an economic analysis of the scale and impact of BEPS and BEPS countermeasures (Chapter 1).

·        Potential indicators of the scale and economic impact of BEPS and their various strengths and limitations (Chapter 2).

·        Existing empirical analyses of BEPS and proposals for two complementary approaches to estimating the scale of BEPS (Chapter 3).

According to the press release the consultation paper also identifies specific questions where input is required in order to advance the work on Action 11.

Comments should be submitted to the OECD by email by May 8, 2015 at the latest.

The OECD also announced that a public consultation meeting on Action 11 will be held at the OECD Conference Centre in Paris on May 18, 2015.

Click here to be forwarded to the Discussion Draft on Action 11 as published on the website of the OECD, which will open in a new window.

For further information click here  to be forwarded to a press release as issued by the OECD in this respect.

Click here to be forwarded to the webpage of the OECD where one can register for the public consultation meeting regarding BEPS Action 11 to be held on May 18, 2015.

Interested in efficiently finding more BEPS related information? Then click here to be forwarded to our BEPS LIBRARY where you can very efficiently find more BEPS related information.

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