In an ongoing effort to end tax base erosion and artificial profit shifting to avoid taxes, the Organization for Economic Cooperation and Development (OECD) has released its first recommendations for an international corporate tax renovation. The plan is based on the BEPS (Base Erosion and Profit Shifting) action plan which is looking to help governments protect their tax bases.

What is included in the plan?

There are several elements the Action plan focuses on, including:

• Realigning taxation to restore the intended benefits of international standards and to end tax treaty abuse.
• Ensuring that pricing outcomes are in line with value creation by focusing on transfer pricing and intangibles.
• Opposing harmful tax procedures.

For more details on the plan and their goals for 2015, read our article “OECD unveils first elements of proposed global corporate tax overhaul”.