03 November 2016 OECD BEPS and EU state aid investigations: Focus on tax planning intensifies Ongoing tax policy changes driven by the Organisation for Economic Co-operation and Development (OECD) and its Base Erosion and Profit Shifting (BEPS) project, as well as recent rulings by the European Commission regarding "State aid," have created new tax planning challenges for multinational enterprises (MNEs). Increasingly, national revenue authorities are requiring MNEs to provide country-by-country breakdowns of their profits and tax payments. At the same time, the European Commission continues to investigate agreements between certain European Union (EU) member countries and multinational taxpayers, ruling in several cases that the arrangements were "State aid" and that the implicated countries must recover taxes from the affected MNE groups. This high-level overview, attached below, explains the tax challenges MNEs face as a result of these two developments, and action steps they can take to make sure their planning is aligned with the changing global tax landscape. Document ID: 2016-1859 |
