Current international tax rules are based on principles that
have not kept up with globalisation and the rise of the digital
economy. Over the years the rules have been patched up but, almost
two years ago, the Organisation for Economic Co-operation and
Development (OECD), acknowledging that a substantial overhaul was
needed to combat base erosion and profit shifting (Beps), launched
its ambitious 15-point action plan designed to re-write the rules
for international taxation.
With the support of the G20 and many other countries, the OECD
is working hard to meet the goals of its action plan, with the
final self-imposed deadline being this December. This will give
countries the domestic and international tools they need to
eliminate double non-taxation of income and prevent tax
minimisation strategies while continuing to prevent double
taxation.
