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BEPS: Successes and setbacks

Peter Vale Peter Vale

What the BEPS progress report tells us about the road ahead

As most of the Base Erosion and Profit Shifting (BEPS) Action Plan is made up of best practice recommendations rather than ‘red line’ requirements, it was always going to be applied selectively and in different ways from country to country.

Yet implementation has already confounded expectations in the extent to which many of the optional recommendations are being embraced and fast-tracked by major economies worldwide. These legislative changes are set to have a significant impact on financial and operational structures, as well as effective tax rates. At the same time, some of the BEPS actions that were meant to be universally and consistently implemented have stalled through lack of political momentum or international agreement on how they should be applied.

So, what aspects of BEPS have been most successful in winning government support, gaining an international consensus and delivering on their objectives? What aspects
remain work in progress? What do these ‘successes’ and ‘setbacks’ for the implementation of BEPS say about the likely future shape of the international tax landscape, and the resulting challenges ahead for your business?