Former Treasury Official Expects OECD’s BEPS Project Will Improve, Not Jettison, Existing International Tax Rules

May 2013
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Former Treasury Official Expects OECD’s BEPS Project Will Improve, Not Jettison, Existing International Tax Rules

At a glance

In this article published by Bloomberg BNA, former Treasury Associate International Tax Counsel David Ernick, who joined PricewaterhouseCoopers in February after eight years with the government, spoke with Kevin Bell about the direction of the Organization for Economic Cooperation and Development’s project on base erosion and profit shifting.

Former Treasury Associate International Tax Counsel David Ernick, who joined PricewaterhouseCoopers in February after eight years with the government, met with BNA reporter Kevin Bell April 11 to talk about the direction of the Organization for Economic Cooperation and Development’s project on base erosion and profit shifting. Ernick, who was Treasury’s principal staff attorney for transfer pricing matters and represented the United States as a delegate to the OECD Working Party No. 6, predicted the BEPS project will result in improvements to existing international tax standards rather than radical changes. Questioned about a common criticism of transfer pricing, the former official said he is untroubled by the fact that related parties engage in transactions that rarely take place between independents. The synergies that exist in a related group, he said, "are the reason why multinational enterprises exist and oftentimes can operate more efficiently than unrelated parties can".