OECD Measures Would Tie Off International Tax Loopholes

The Organization for Economic Cooperation and Development has offered the Group of Twenty nations a comprehensive and coordinated action plan for addressing gaps in international tax rules that motivate corporate taxpayers to shift profits to lower-tax jurisdictions.

Requested by the G20, the OECD’s final package of measures -- called the Base Erosion and Profit Shifting measures -- includes action items that would need to be undertaken on a coordinated, global basis to plug the holes that enable companies to engage in offshore tax planning that reduces the total global tax base. The package includes minimum standards on country-by-country reporting to give tax administrators a better view of the operations of multinational enterprises, and treaty shopping, to put an end to the use of conduit companies to channel...