"beps action 4" - 1 õppematerjal

Assignment Module 3 - BEPS project Action 4

BEPS project Action 4: Interest deductions and other financial payments Maris Leemets 10.08.2016 Peer Assignment in Module 3 The OECD with its Base Erosion and Profit Shifting (BEPS) project is working towards proposing politically feasible and multilaterally acceptable ways to minimize the corporate tax base erosion and profit shifting activities since 2013. Out of its 15 main lines of work under BEPS project (called Actions) I will concentrate on Action 4 which aims at proposing new rules for preventing the manipulation of interest expense related tax deductions of corporates. The underlying problem is that multinational groups can easily create and relocate debt in their group according to the most preferential tax treatment available which in some cases results in no or even negative corporate tax payments fr...