International Tax Structuring in Light of the OECD BEPS Project - Omleen Ajimal, Director of...
20
A Whole New World! International Tax Structuring in light of the OECD BEPS Project 3 June 2014 Presented by: Omleen Ajimal
-
Upload
the-international-business-structuring-association -
Category
Law
-
view
182 -
download
0
description
A whole new world! International tax structuring in light of the OECD BEPS project. • What does this all mean in practice? How will the OECD BEPS project have legal effect? • Tax structuring, before and after: the effect of the OECD BEPS project on international business structures • Tax compliance and risk management, before and after: what will your business have to do differently going forward? Omleen Ajimal, Director of International Tax, Squire Sanders
Transcript of International Tax Structuring in Light of the OECD BEPS Project - Omleen Ajimal, Director of...
A Whole New World!
International Tax Structuring
in light of the OECD BEPS
Project
3 June 2014
Presented by: Omleen Ajimal
RECAP: the problems
• Generally speaking: Double
Taxation v Double NON Taxation
• Specifically: Key concerns posed
by the Digital Economy
RECAP: proposed solutions (1)
• ACTION 1 – Address the Tax Challenges of the Digital Economy
• ACTION 2 – Neutralise the Effects of Hybrid Mismatch
Arrangements
• ACTION 3 – Strengthen Controlled Foreign Company rules
• ACTION 4 – Limit Base Erosion via Interest Deductions and
other Financial Payments
• ACTION 5 – Counter Harmful Tax Practices more effectively
RECAP: proposed solutions (2)
• ACTION 6 – Prevent Treaty Abuse
• ACTION 7 – Prevent Artificial Avoidance of Permanent
Establishment Status
• ACTIONS 8 – 10 – Ensure Transfer Pricing Outcomes are in line
with Value Creation
• ACTION 13 – Re-examine Transfer Pricing Documentation
• ACTION 15 – Develop a Multilateral Convention
WHAT DOES ALL THIS MEAN
IN PRACTICE?
NOTHING
(SPECIFIC)
(YET)
“IMPLEMENTATION IS KEY”
HOW WILL THE OECD BEPS
PROJECT HAVE LEGAL EFFECT?
IMPLEMENTATION : BEPS
• Double Tax Treaty Changes:
• Bilateral Negotiations
• The Multilateral Convention
• Domestic Law Changes
IMPLEMENTATION: Life outside BEPS!
• Changing Attitudes of Tax Authorities
• Domestic Law Changes
TAX STRUCTURING –
BEFORE and AFTER
The Effect of the BEPS Project on
International Business Structures
THE “DOUBLE IRISH DUTCH”
SANDWICH
Advertiser/Customer
US PARENT
DUTCH CO
IRISH CO
(BERMUDA
RESIDENT)
IRISH CO
TAX COMPLIANCE AND RISK
MANAGEMENT –
BEFORE and AFTER
What Will Your Business Have to do
Differently Going Forward?
COMPLIANCE AND
RISK MANAGEMENT (1)
Permanent Establishment
Exposure Risk
COMPLIANCE AND
RISK MANAGEMENT (2)
Transfer Pricing
Risk Management
Transparency and
Exchange of Information
COMPLIANCE AND
RISK MANAGEMENT (3)
Managing Relationships
COMPLIANCE AND
RISK MANAGEMENT (4)
