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Article

6 Oct 2015

Author:
Prem Sikka, University of Essex, on Conversation (UK)

OECD’s new tax proposals won’t stop companies shifting profits to tax havens

…There is much to digest and the OECD does offer some ways of tackling BEPS, but ultimately the project is unlikely to make a significant dent in organised corporate tax avoidance…The OECD has supported calls for country-by-country reporting…But the OECD only recommends that this disclosure be made by each multinational corporation to the tax authority in its home country. To secure this information, governments of other countries will need to enter into numerous treaties. Poorer countries will hardly be in a position to leverage negotiations with more powerful countries. A more efficient solution would be for companies to publish the required information as part of their annual accounts…The OECD…seeks to repair the current broken system through improved documentation for transfer pricing and international treaties. An alternative approach known as unitary taxation can address the above shortcomings…[Also refers to Amazon, Apple, Google, Microsoft, Starbucks]

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