New Australia/Germany Double Tax Treaty shows Australia's policy response to BEPS

The OECD Finalises its BEPS Project

Making Dispute resolution Mechanisms more effective - OECD issues final paper on BEPS 14

Preventing Treaty Benefits in inappropriate circumstances - OECD issues final paper on BEPS 6

Mandatory Disclosure Rules: OECD Releases final paper on BEPS 12

Limiting Base Erosion via Interest deductions - OECD finalises BEPS Action 4

Neutralising the effects of Hybrid Mismatch arrangements – OECD issues final paper on BEPS 2 

Preventing the Artificial Avoidance of Permanent Establishment Status: OECD Releases Revised Discussion Draft on BEPS Action 7

Strengthening CFC Rules: OECD releases report on BEPS Action 3

Developing a Multilateral Instrument to Modify Bilateral Tax Treaties: OECD issues its paper on BEPS Action 15

Neutralising hybrid mismatch arrangements: OECD issues paper on BEPS Action 2 

Preventing the Granting of Treaty Benefits in Inappropriate Circumstances: OECD issues final paper on BEPS Action 6

Countering Harmful Tax Practices More Effectively: OECD releases report on BEPS Action 5

Addressing the Tax Challenges of the Digital Economy: OECD issues final paper on BEPS Action 1 

OECD BEPS Action Plan Items and Deadlines

OECD releases Action Plan on Base Erosion and Profit Shifting

Addressing the Tax Challenges of the Digital Economy: OECD BEPS Action 1 Discussion Draft

OECD issues Discussion Draft on BEPS Action 6: Preventing the granting of Treaty benefits in inappropriate circumstances

Improving the transparency of tax information in Australia – who will benefit?

Tracking the changes to Base Erosion and Profit Shifting

Updated 1 August 2016

In July 2013 the Organisation for Economic Cooperation and Development (OECD) released the Action Plan on Base Erosion and Profit Shifting (BEPS Action Plan). The BEPS Action Plan sets out 15 actions and further work required to counteract the methods of base erosion and profit shifting (BEPS) used by multinational companies, which the OECD identified in its February 2013 report Addressing Base Erosion and Profit Shifting (BEPS Report). The BEPS Report highlighted the available evidence on the existence and magnitude of BEPS in the global economy.

Australia chaired the G20 from 1 December 2013 to 30 November 2014 and host the G20 discussions in November 2014. The G20 Finance Ministers have clearly signalled the need for global co-operation to counteract BEPS and their political endorsement of the BEPS Action Plan. We expect that BEPS will be at the forefront of the G20 agenda and discussions in 2014 and 2015. Already the Australian Treasurer has signalled Australia's willingness to show leadership on this issue.

BEPS Resources

Keeping track of the rapid and inter-related changes and developments in the BEPS Action Plan both in terms of the OECD's publications and domestic tax proposals can be a real challenge for business. This page provides a link to the relevant international and domestic discussion papers and our publications, and is regularly updated as further OECD discussion papers and Australian domestic proposals are announced.

A summary of the BEPS Action Items are set out below, together with a link to the OECD reports and other deliverables issued to date. Our commentary on the BEPS Action Items is attached on the right.

               BEPS action plan item                                                                     Deliverables to date

1. Address the tax challenges of the digital economy

OECD guide to E-commerce transfer pricing and business profits taxation
OECD Public input on tax challenges of the digital economy (November 2013)
OECD Public Discussion Draft BEPS Action 1 (March 2014) - Comments closed April 2014
OECD Comments received on Discussion Draft (May 2014)
OECD Paper (September 2014) 
OECD Public Discussion Draft: VAT/GST guidelines (18 December 2014)
OECD Final Report: Action 1 (5 October 2015)

2. Neutralise the effects of hybrid mismatch arrangements

 

OECD Public Discussion Draft BEPS Action 2 (recommended domestic law changes) (March 2014) – Comments closed 2 May 2014
OECD Public Discussion Draft BEPS Action 2 (Treaty issues) (March 2014) - Comments closed 2 May 2014
OECD Comments received on Discussion Draft (May 2014)
OECD Paper (September 2014)
OECD Final Report: Action 2 (5 October 2015)

3. Strengthen CFC rules

OECD Public Discussion Draft: BEPS Action 3 (April 2015)
OECD Final Report: Action 3 (5 October 2015)

4. Limit base erosion via interest deductions and other financial payments

OECD Public Discussion Draft BEPS Action 4 (18 December 2014)
OECD Final Report: Action 4 (5 October 2015)
OECD Public discussion draft: Action 4 Elements of the design of group ratio rule (11 July 2016)
OECD Public Discussion Draft: BEPS Action 4 Approaches to address BEPS involving interest in the Banking and Insurance sectors (28 July 2016)

5. Counter harmful tax practices more effectively, taking into account transparency and substance

OECD Paper (September 2014)
OECD Final Report: Action 5 (5 October 2015)
6. Prevent treaty abuse

OECD Public Discussion Draft: BEPS Action 6 (14 March 2014)
OECD paper (September 2014)
Public comments received - BEPS Action 6 (12 January 2015)
OECD public consultation (22 January 2015)
OECD Revised Discussion Draft BEPS Action 6 (May 2015) 
OECD Final Report: Action 6 (5 October 2015)

7. Prevent the artificial avoidance of permanent establishment status

OECD Discussion Draft for public input (31 October 2014)
OECD Paper calling for Submissions on Artificial Avoidance of PE Status (October 2013)
Public comments received - BEPS Action 7 (12 January 2015)
OECD Revised Discussion Draft BEPS Action 7 (May 2015)
OECD Final Report: Action 7 (5 October 2015)
BEPS Action 7: Discussion Draft on the attribution of profits to permanent establishments (4 July 2016)

8. Assure that transfer pricing outcomes are in line with value creation: intangibles

OECD Revised Discussion Draft on Transfer Pricing of Intangibles (July 2013)
OECD Comments received on Revised Discussion Draft on Transfer Pricing of Intangibles (October 2013)
OECD Paper (September 2014)
Public comments received - amendments to chapter I of the transfer pricing guidelines (10 February 2015)
OECD Public Discussion Draft: BEPS Action 8 (29 April 2015)
OECD Public Discussion Draft BEPS Action 8 - Hard to value intangibles (June 2015)
OECD Final Report: Actions 8-10 (5 October 2015)
BEPS Actions 8-10: Discussion Draft on the revised guidance on profit splits (4 July 2016)

9. Assure that transfer pricing outcomes are in line with value creation: risks and capital

OECD White paper on Transfer Pricing Documentation (July 2013)
Public comments received - amendments to chapter I of the transfer pricing guidelines (10 February 2015)
OECD Final Report: Actions 8-10 (5 October 2015)
BEPS Actions 8-10: Discussion Draft on the revised guidance on profit splits (4 July 2016)

10. Assure that transfer pricing outcomes are in line with value creation: other high risk transactions

OECD Discussion Draft for public input (3 November 2014)
OECD White paper on Transfer Pricing Documentation (July 2013)
Public comments received - intra group low value add services (20 January 2015)
Public comments received - profit splits in global value chains (10 February 2015)
Public comments received - amendments to chapter I of the transfer pricing guidelines (10 February 2015)
Public comments received - cross-border commodity transactions (10 February 2015)
OECD Final Report: Actions 8-10 (5 October 2015)
BEPS Actions 8-10: Discussion Draft on the revised guidance on profit splits (4 July 2016)

11. Establish methodologies to collect and analyse data on BEPS and the actions to address it

OECD Public Discussion Draft BEPS Action 11 (April 2015)
OECD Final Report: Action 11 (5 October 2015)

12. Require taxpayers to disclose their aggressive tax planning arrangements

OECD Public Discussion Draft BEPS Action 12 (31 March 2015)
OECD Final Report: Action 12 (5 October 2015)

13. Re-examine transfer pricing documentation

OECD White paper on Transfer Pricing Documentation (July 2013)
OECD Discussion Draft -Transfer-pricing-documentation (January 2014)
OECD Comments received on Transfer pricing documentation Discussion Draft (March 2014)
OECD Paper (September 2014)
OECD Implementation Package for Country-by-Country Reporting (June 2015)
OECD Final Report: Action 13 (5 October 2015)
BEPS Action 13: Guidance on the implementation of country-by-country reporting (29 June 2016)

14. Make dispute resolution mechanisms more effective

OECD Public Discussion Draft BEPS Action 14 (18 December 2014)
Public comments received - BEPS Action 14 (19 January 2015)
OECD public consultation (23 January 2015)
OECD Final Report: Action 14 (5 October 2015)

15. Develop multilateral instrument

OECD Paper (September 2014)
OECD Final Report: Action 15 (5 October 2015)
OECD Public Discussion Draft BEPS Action 15 (31 May 2016)

Other relevant links

Australian Treasury Paper | Improving the transparency of Australia's business tax system (April 2013)
Australian Treasury Paper | Addressing Profit Shifting through artificial loading of debt in Australia (May 2013)
Australian Treasury Issues Paper | Taxation of Multinational Enterprises (May 2013)
Australian Treasury Paper | Risks to the Sustainability of Australia's Corporate Tax Base (July 2013)
Presentation on the latest news on the OECD BEPS Project (November 2013)