OECD releases discussion draft on BEPS Action 11

On April 16, 2015, OECD released a discussion draft under the BEPS (Base Erosion and Profit Shifting) project, more specifically concerning Action 11 (Establish methodologies to collect and analyze data on BEPS and the actions to address it). Action 11 of the BEPS Action Plan focuses on developing recommendations regarding indicators of the scale and […]

Written By ACT Team

On June 1, 2015
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On April 16, 2015, OECD released a discussion draft under the BEPS (Base Erosion and Profit Shifting) project, more specifically concerning Action 11 (Establish methodologies to collect and analyze data on BEPS and the actions to address it). Action 11 of the BEPS Action Plan focuses on developing recommendations regarding indicators of the scale and economic impact of BEPS and ensuring that tools are available to monitor and evaluate the effectiveness and economic impact of the actions taken to address BEPS on an ongoing basis. According to the BEPS Action Plan, 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 payments data) 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. The recent discussion draft sets out the context and background to the work on Action 11, and includes chapters that focus on three key areas as follows:

-Chapter 1 is 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 2 provides potential indicators of the scale and economic impact of BEPS and their various strengths and limitations.

-Chapter 3 sets existing empirical analyses of BEPS and proposes two complementary approaches to estimating the scale of BEPS.

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