Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


OECD response to BEPS gathers momentum

OECD response to BEPS gathers momentum


An international solution to base erosion and profit shifting (BEPS) moved a step closer at OECD discussions involving IRD officials last week, says Revenue Minister Todd McClay.

The Committee of Fiscal Affairs approved the final recommendations for the first set of actions that are due to be presented to Finance Ministers at a meeting of the G20 in September.

The BEPS Action Plan has seven deliverables due in 2014 and is on track to meet these targets. The deliverables relate to the following action points:
Addressing the Tax Challenges of the Digital Economy
Neutralise the Effects of Hybrid Mismatch Arrangements
Countering Harmful Tax Practices More Effectively, Taking into Account Transparency and Substance
Preventing the Granting of Treaty Benefits in Inappropriate Circumstances
Modifications of Chapters I, II and VI of the OECD Transfer Pricing Guidelines Related to Transfer Pricing Aspects of Intangibles
Modifications of Chapter V of the OECD Transfer Pricing Guidelines Related to Documentation
Developing a Multilateral Instrument to Modify Bilateral Tax Treaties

“It’s an indication of the global commitment to finding solutions that the OECD members are keeping on track with their tight deadline to deliver these actions,” Mr McClay says.

“There is no simple solution to BEPS.”

“The problem is that current international tax rules cannot effectively deal with highly mobile multinational operations working across different jurisdictions, so BEPS is only going to be solved through international co-operation.”

“New Zealand’s domestic tax laws are very strong in this area and include thin capitalisation rules, taxation of passive income of controlled foreign companies and a series of anti-arbitrage rules. These rules help to limit the ability of companies to shelter income.”

“Later this year New Zealand will also be attending the G20 summit in Brisbane. Of particular interest to attendees will be discussions around the tax implications of BEPS and the rapidly digitising world economy.”

“Our representatives at the OECD and G20 will continue to be deeply involved because New Zealand is committed to developing and being part of a strong global response,” Mr McClay says.

ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

PARLIAMENT TODAY:

Transport Report: LGNZ Calls For Proactive Approach To Mobilise Regions

LGNZ has today released Mobilising the Regions, its major transport study, which highlights the economic and social impact of strategic transport decisions nationally and in the regions, and the direct link between regional development, national prosperity, social well-being and cohesiveness. More>>

ALSO:

Transport: New Rules Bring Double-Deckers To Our Cities

New rules that allow buses, including double-deckers, to carry more people will ramp up the public transport offering in our cities, Transport Minister Simon Bridges and Associate Transport Minister Craig Foss say. More>>


Images & Video: Four Alternative Flags For Referendum

Flag Consideration Panel chair, Professor John Burrows, said the Panel’s decision had been guided first and foremost by the results of its engagement programme across a range of communities where thousands of Kiwis shared what was special about New Zealand, as well as the Panel’s own selection criteria. More>>

ALSO:

Labour: New Figures Show Speculators Rampant

New figures released by the Reserve Bank show there’s been an explosion in mortgage lending with most of the growth going to property investors, Labour’s Housing spokesperson Phil Twyford says. More>>

ALSO:

False Official Information Response: English's Apology Accepted

Finance Minister Bill English is being thanked for his apology to New Zealand First Leader and Member of Parliament for Northland Rt Hon Winston Peters... Mr English says his staff and the Treasury have searched again, and they found the document that they denied having. More>>

ALSO:

Midwives On Pay Equity: Historic Bill Of Rights Case For High Court

“We have been left with no choice.” That from Karen Guilliland, the Chief Executive of the New Zealand College of Midwives, as the organisation prepares to file a pay parity discrimination case on the basis of gender under the NZ Bill of Rights Act in the High Court. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news