BEPS and International Fiscal Law
The recent work reference regarding fiscal law proposed by the Organisation for Economic Co-operation and Development (OECD) in its BEPS plan faces an ambitious challenge to what the globalized economy and fiscal laws refers to.
To all of this, what is the BEPS? According to OECD information BEPS is a reference to base erosion and profit shifting product of misconceptions or unwanted mechanisms between the different international systems which might help multinational enterprises to disappear fiscal benefits or transfer goods towards locations with little or null activity, whether there is a light imposition or few to null rent over societies.
Due to the increasing capital and asset mobility such as intellectual property and even new business models from the 21st century the BEPS has turn into a tangible and quantifiable problem this is because originally tax recall over societies was at a national scale thing that is currently extrapolated and derives in a multiple imposition, or well, the contrary, a null imposition.
It’s in this train of thoughts it must be noticed that the fiscal venue between states in tax collecting matters so to attract direct foreign investments, where there has been a misconception and no imposition spaces which contributes to transnational companies to avoid a fair tax payment.
Finally, the BEPS project presents itself with certain reserves about its effective functionality, so is because of that, that complementary instruments have been implanted to the OECD plan such as the unitary taxation theory (explained later on) so to avoid base erosion from transnational companies.
This is how, the discussion regarding the aspects linked with tax norms, the identification and access of information sources, tools and techniques, as well as strategic aspects, cultural and region-context related matters that affect the functionality of risk management must be reviewed and kept in mind when to identify the challenges that growing in this matter suppose.