Base Erosion and Profit Shifting (BEPS) Action Plan
- The recommendations of the BEPS Project led by the Organisation for Economic Cooperation and Development (OECD) and published in October 2015 are at the root of much of the coordinated activity on perceived international tax avoidance techniques, although we’ll help you understand and input to how these are being nuanced with additional work.
- The timing, methods and extent of implementation vary between jurisdictions and our extensive network will help all stakeholders plan how best they can react to proposals and recommendations.
- We can help businesses identify significant risk areas and begin remediation as required, based on current actions of tax authorities and the future impact of OECD work.
- Our people, information services and insights will monitor for you the domestic impact of BEPS work – especially on behavioural changes.
DAC6: The new EU directive on cross border tax arrangements
What is DAC6?
- DAC6, the new EU directive in relation to cross-border tax arrangements, has been in force since 25 June 2018 and is currently being transposed into national laws by the EU member states. (Click here for further information on the timeframes)
- DAC6 applies to cross-border tax arrangements which meet one or more specified characteristics (hallmarks), and which concern either more than one EU country or an EU country and a non-EU country.
- DAC6 introduces a reporting obligation for intermediaries and taxpayers, depending on the set up of the arrangement and local law.
We can help businesses understand the relevance and importance of DAC6, and the need to act now.
EU Direct Tax Group
- Our pan-European network of EU law experts combine their skills to advise in all areas of EU direct tax law, including the fundamental freedoms, EU directives and State aid rules..
- We have set up client-facing expert working groups to address specific hot topics such as State aid, BEPS, Code of Conduct and CCCTB.
- Through our EUDTG Technical Committee, we continuously develop new and innovative EU law positions and solutions for practical application by clients.
- We input to the EU and international tax debate and maintain regular contact with key EU and OECD policy-makers through our EU Public Affairs capability in Brussels.
- We facilitate the "EBIT" business initiative.
- Our secretariat in the Netherlands operates an EU tax news service, keeping clients up to date with developments as soon as they happen.
Global Fiscal Policy Advisory
We are a UK-based team specialising in supporting governments and international development agencies in analysing, building and implementing the private sector and development organisations across the world in all areas of fiscal and economic policy.
Many of the team have previously worked directly for finance ministries, tax authorities, policymakers and international financial institutions, therefore offering a deep understanding of the concerns and preoccupations of key governmental stakeholders.
Some of our recent projects have involved:
- Improving the efficiency of public services by introducing new budget oversight and performance management procedures,
- Reforming public financial management processes, enabling governments to align public spending with its longer-term strategic plan,
- Introducing new tax, policy and governance initiatives in order to increase the transparency of public finances, oversight and encourage citizen engagement,
- Supporting the finance ministry of a resource-rich country as it adjusts to lower commodity prices and forecasting the impact, and
- Helping a revenue authority in a key emerging market to model its informal economy
Tax & transparency
Tax and its impact on corporate reputation is a key issue for business while tax transparency, reporting and the tax gap are vital to other stakeholders like governments, supranationals and NGOs. Areas where we work with to help improve transparency around tax in a national context, and globally are:
- Tax transparency: country-by-country reporting
- Building trust, enhancing reputation
- Total Tax Contribution
- The annual Paying Taxes study
- Effective tax rate benchmarking
The future of tax
- When we look to the long term future, many of the challenges and opportunities that we see ahead, both for tax and more generally, can probably be grouped into categories which deal with shifts in economic power, demographic shifts, technological change, greater urbanisation and climate change/ resource scarcity.
- There are trends that we see ranging from the current to the more medium term. We’ve now started to raise some of these trends through our regular Tax Policy Bulletins and alerts from specific networks, including for example those stemming from the Base Erosion and Profit Shifting (BEPS) Action Plan, EU fiscal State aid and those around the likely growth of cooperative compliance in many territories. Our annual Paying Taxes report also provides trends in key elements of tax compliance around the world.
- Technological advances are driving huge interest in how different the tax function of the future will look and operate, along with the impact on systems of step change developments like blockchain, robotics and artificial intelligence.
- PwC is also interested in understanding and promoting debate on what people really want from their tax regime.
Tax Policy Bulletins
- Keeping up with the increasing pace of change surrounding tax policy and administrative developments worldwide can be a real challenge.
- Drawing on our experience of tax policy issues and insight from relationships with organisations such as the OECD, we have put together a series of Tax Policy Bulletins. These are more than just insights or thought leadership, but are a fundamental part of our tax policy services.
- With analysis and insight on policy changes around the world, these bulletins are designed to help you stay up-to-date with the latest developments and explain what these changes mean for you.
Taxation of the digitalizing economy
PwC Statement on Taxation of the digitalizing economy
PwC strongly supports the OECD/G20 process, which over the next 18-24 months seeks to reach international consensus on measures for taxation of the digitalizing economy. This is a centrally important issue, with implications for government revenue, as well as for economic wellbeing. We are concerned that rushed unilateral or regional measures could undercut the efforts of the 124 countries of the Inclusive Framework of the OECD to reach a broadly-agreed consensus that meets the needs of governments and the expectations of their citizens, while promoting economic growth and job creation. Although we understand the pressure on policymakers and politicians to act swiftly, we urge them to direct their efforts towards reaching a global solution in the Ottawa Framework.
Reflections about Economic and Policy Aspects of Digital Services Turnover Taxes are set out in more detail in the link below, that considers the relevant economic literature in this area, and which we hope will be a helpful contribution to the debate on tax system design as countries grapple with these important new issues.