Base Erosion and profit Shifting Essay Example | Topics and Well Written Essays - 500 words

Base Erosion and profit Shifting - Essay ExampleWith the go out of the OECD, the BEPS is not the main problem created by the companies in the respective countries instead, it is the rules in the taxation that is the problem. The OECD openly blames the countries for having the premature rules for the business making the business to have difficulties. The OECD is majorly against the harmful taxation in the competition in the force field of business.The BEPS has got a number of results in the business mostly in the combination of its strategies both at main office and at the host countries hence this pass on make the domestic tax to be levied. This will likewise affect the domestic tax systems whereby the income will be taxed by more than one jurisdiction in the domestic level hence creating double taxation. As stated early, gaps will too be introduced by the BEPS making the income not to be taxed. In the process, there will be winners and losers whereby the ontogenesis countries will also face challenges in regard to the BEPS because of their poor national legal and business platforms concerning taxation. They will need musical accompaniment groups like the Global Fora on the treaties of tax to help them in developing the countries.With the BEPS action plan, there will be an improvement of the tax standards internationally in the principles of Coherence, Transparency, and Substance. We as citizens will benefit from the digital economic system which will be improved by the BEPS. This will also lead to innovation in the developing countries making them to drastically improve with the help of the action plan.