|By TAP Staff| The existing international tax rules need to be modernised to reflect how business is done today, PWC said in a report on the OECD recommendations regarding Base Erosion Profit Shifting (BEPS) criteria.
The BEPS project is an important step in the need to restore confidence in the international tax system. The OECD has been looking at every aspect of the international rules to see if they are appropriate for today’s business world both in developed and developing countries.
The proposed BEPS package announced today reflects more consensus and progress on the issues than many expected. The multilateral instrument means there is the prospect of a rapid update of many double tax treaties to start the process of implementing some of the recommendations outlined in the BEPS package sooner rather than later.
But, there is still much left to be done, for example, delivering improvements in dispute resolution in practice and ensuring consistent and balanced application of the new standards.
“The OECD’s achievement should not be underestimated,” said Dean Kern, Tax and Legal Services Leader. “Today marks a milestone in what remains a long and challenging journey. Change will not happen overnight; success will depend on continued efforts and commitment by Governments and businesses.”