The Action 11 work of the BEPS (base erosion and profit shifting) action plan aims to produce an overview of several different economic analyses of BEPS using different data and methodologies that will give a potential range of the scale (i.e. magnitude of the change in overall tax receipts) and economic impacts (i.e. effects on total and geographic location of employment, investments in physical and knowledge-based capital, competition, etc.). Such an approach will be supported by the development of a range of indicators that are broadly correlated with BEPS behaviors and outcomes, which can indicate changes over time and across countries. A significant focus of the Action 11 work will be on developing indicators and tools that will assist in the monitoring and evaluation of the effectiveness (i.e. effectiveness of achieving desired outcomes) of actions taken to address BEPS on an on-going basis.
The OECD indicates that this will involve assessing a range of existing data sources, identifying new types of data that should be collected, and developing methodologies based on both aggregate (e.g. FDI and balance of payments data) and micro-level data (e.g. from financial statements and tax returns). The OECD indicated to take into consideration taxpayers’ confidentiality and the administrative costs for tax administrations and businesses.
Request for input
The Action Plan accepts that “the OECD’s work on the different items of the Action Plan will continue to include a transparent and inclusive consultation process” and that all stakeholders such as business, labour- and, non-governmental organisations, think tanks, and academia should be consulted.
In this respect, a request for input has also been released for Action 11. Interested parties are invited to send their comments which should be submitted electronically before 5 pm on 19 September 2014 to CTP.TPS@oecd.org.
The request for input on Action 11 can be consulted here.