The OECD’s BEPS guidelines are set to challenge intangible business structures – multinationals must prepare for this landscape evolution

Taxand, the world’s largest global organisation of tax advisors to multinational businesses, today announced the launch of a new client offering, the Taxand Global BEPS Diagnostic Analysis Tool.

The tool provides multinationals with an efficient and structured means of assessing an organisation’s position with respect to its supply chain, to understand how the OECD’s Base Erosion and Profit Shifting (BEPS) guidelines will impact its business.

The OECD’s BEPS Action Plan is designed to address the issue of international tax planning that has the effect of artificially shifting profits to locations where they are subject to a more favourable tax treatment and notably to recognise the importance of the borderless digital economy. The global initiative, which reaches its first stage of implementation in September 2014, will require close international co-operation, transparency, and data and reporting requirements from all countries and multinationals alike.

Business (PD)With the BEPS timeline for implementation closing in December 2015, multinationals around the world have a limited window of opportunity to act to ensure risks are identified and managed.

The Taxand Global BEPS Diagnostic Analysis Tool consists of three key areas intended to closely follow the OECD guidance:

Identification: By means of a one day on-site visit and interviewing key people in your company, collecting the appropriate legal documentation, Taxand will obtain a high level picture of your supply chain;

Diagnosis: A review of the supply chain structure, legal agreements and supporting documentation to assess the overall risk and level of BEPS weakness;

Action: The final stage of this analysis is to define, plan and initiate concrete actions to achieve tax audit readiness and strategic insight in your structure going forward.

Antoine Glaize, Taxand global TP & business restructuring service line leader, said:

“BEPS is a game changer for the international taxation of multinationals. The OECD wants to see real substance in counterpart of profits and will enforce more transparency. Multinationals need to conduct proper risk assessments to prepare for the impact of the new guidelines and manage the new reporting requirements while maintaining their profit responsibilities to shareholders. The clock is ticking for multinationals to fully understand how these new regulations will impact their existing structures.”

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