The measure
The Chancellor today confirmed the Government's support for
the work of the OECD on addressing the issue of base erosion and
profit shifting by multinational companies.
The OECD recognises that the interaction between domestic tax
laws in different countries and the international tax system that
has developed over the last 85 years may not have kept pace with
globalisation and modern-day centralised business models, or the
use of the internet for business. The issues that arise cannot be
dealt with effectively by individual governments acting alone, but
require international coordination and consensus.
The OECD issued its initial report on Addressing Base Erosion
and Profit Shifting in February 2013, in time for the G20 meeting
in Moscow. The report concludes that further work is needed. In
particular, the OECD identifies six key pressure areas:
