The OECD Action Plan for tackling base erosion and profit shifting (BEPS) was unveiled this morning at the G20 meeting of finance ministers in Moscow. The plan discusses a timeframe of between 12 and 24 months for implementing action and outlines how the OECD will work with national states to improve the overall tax take and clamp down on tax arbitrage by addressing perceived flaws in international rules.
Argentina this week announced a new tax deal for energy exporters, which would allow companies to export 20% of oil and gas tax-free if certain conditions are met.
The UK has done much to reform its corporate tax regime over the past 10 years, evidenced most recently by the announcement of a further corporate tax cut – to 20% from April 2015 – and the introduction of a patent box regime. The consensus is that the government’s Open for Business agenda is working.
Australia’s Assistant Treasurer, David Bradbury, has released a joint statement with Deputy Prime Minister Anthony Albanese regarding a new tax incentive to drive private investment in infrastructure.
Germany remains concerned about the competitive disadvantage it feels it is being placed under by the existence of European patent box regimes such as the UK Patent Box and the Dutch Innovation Box.
Dave Camp and Max Baucus, the chairmen of the US’ two tax-writing committees, have kicked off their bipartisan tax reform road-show (The Simpler Taxes For America Tour) in Minnesota, with Baucus conceding that getting the corporate tax rate down to 25% is “a bit of a stretch”.
