Base Erosion, Profit Shifting and the Future of the Corporate Income Tax

The OECD’s work on aggressive tax planning aims to help tax authorities identify and respond to tax risks, and to share country experiences and responses in dealing with aggressive tax planning.

In 2012 the OECD began a comprehensive project to address the relevant tax issues and to design new rules to prevent "base erosion and profit shifting" (BEPS). The G20 group of finance ministers and central bank governors from the 19 most developed countries plus the European Union (EU) has been a firm supporter of the work. This article provides an in-depth discussion of the BEPS initiative and how the OECD actions may help to promote international coherence of corporate income taxation.