Today at 2 pm the OECD announced the final BEPS action plan on a live webstreamed news conference.
Though this was very high level, it did not seem as though the final versions of the 15 action plans contain any significant surprises.
For me personally, I found the plans to ensure effective implementation the most news worthy.
The OECD plans a global tour within the next 3 months to countries and organisations such as the IMF and paragovernmental organisations to get continued political support for the adopted action plans. This will allow effective monitoring of the actions which require national implementation. In addition, the adoption of minimum standards will ensure uniformaty of BEPS implementation.
Adoption of the proposals into the TP Guidelines. Basically done with the next publication. Country by Country reporting: effective as of 1-1-2016. A planner review in 2020 is most likely to extend the reporting to MNE’s below 750 mio.
Multilateral instrument negotations between 90 countries are to start in the first week of November 2015. Goal is to have a complete instrument by end 2016. Maybe not all countries negotiating may sign, but for those who do, there will be a mass amendment of their treaty networks regarding actions 2 on hybrids, 6 on treaty abuse, 7 on article 5 and PE definitions, and maybe article 25 and mandatory arbitraiton (action 14).
So, will BEPS fall flat on implementation as many hope? In my opinion that does not seem likely. The OECD has set out to change behaviour; I think they will largely succeed. Questions are:
What do you think of the BEPS announcements? Please comment below.