TPWeek of the International Tax Review have this week published figures from a survey conducted with 180 in-house tax professionals regarding how they perceive Multinational Enterprises (‘MNEs’) are responding to the OECD’s Base Erosion and Profit Shifting (‘BEPS’) Project and how such MNEs are readying their tax departments to: (i) the changes proposed by BEPS and (ii) to the unilateral measures already implemented in certain jurisdictions.
The figures sourced in response to the questions asked portray interesting results. For instance, in response to the query posed; ‘what best describes your approach for responding to BEPS?’ 54% replied they are taking a proactive response. 33% signalled that they are waiting for BEPS to be concluded. BEPS is expected to be concluded by the end of 2015. 8% are waiting for a response from peers, while 5% have not done anything at all. Interestingly, 44% answered negatively as to whether their in-house tax department has spoken to the company’s board about BEPS.
The results show that 37% of professionals are concerned with the UK’s new anti-avoidance measures, with 20% concerned of the US’ response to BEPS. Moreover, it is BEPS Actions 8, 9 and 10 and 13 `that seem to have caused most concern for professionals who replied that they expect their in-house tax departments to devote 78% of their time to transfer pricing documentation and reporting obligations, while 50% will be devoted to transfer pricing risk and recharacterization. Interestingly, treaty abuse and the digital economy lie at low end of the spectrum, at 17% and 16% respectively.
‘Infographic: How multinationals are prearing for BEPS’, Sophie Ashley, TP Week, 31 July 2015 <http://www.tpweek.com/Article/3476270/INFOGRAPHIC-How-multinationals-are-preparing-for-BEPS.html>