A whirlwind of international tax change has swept the globe in the past year, and in Europe especially, there is no end in sight. European governments have all committed to end BEPS and have eagerly implemented large parts of the OECD BEPS proposals in the past year. #BEPS
The Panama Papers
The public release of the so-called ‘Panama Papers’ #PanamaPapers has added further momentum, and the European Commission recently grabbed headlines with the State aid decision against Ireland for providing a favourable tax ruling to a US multinational company with an unprecedented EUR13 billion of potential recovery.
Broadening tax transparency
Recently, together with a group of my peers from across the KPMG network of member firms, I worked on an overview of the response to BEPS recommendations we are seeing in countries around Europe. From broader requirements for tax transparency through more stringent transfer pricing policies to greater scrutiny of business substance, every country and every multinational organization is feeling the impact.
Enchancing tax competitiveness
At the same time, countries remain committed to enhancing their own tax competitiveness — for example, by reducing corporate tax rates. This issue is expected to seize even more of the spotlight in the years to come as the United Kingdom negotiates its exit from the EU following the June 2016 referendum.
You can read the full report on our website. This is the third edition in our series of ‘pulse checks’ on how actions on BEPS policy are progressing in #Europe. (We also have similar papers for the Americas and Asia Pacific regions.)
An overview of BEPS related trends
Our findings start with an overview of BEPS-related trends in the region as a whole, followed by an in-depth look at how events are unfolding in selected European countries. We conclude with advice that tax directors of all international companies should re-examine tax strategies and structures, prepare for tax transparency and be ready to adapt to and thrive in Europe’s new tax reality.
by Vinod Kalloe
Vinod is the Head of International Tax Policy for the KPMG Meijburg & Co office in Amsterdam, The Netherlands. In the context of the current debate on multinational companies and aggressive tax planning — both in the public domain and across international organizations such as the European Union (EU), Organisation for Economic Co-operation and Development (OECD) and the United Nations...