Mostrando entradas con la etiqueta International Tax. Mostrar todas las entradas
Mostrando entradas con la etiqueta International Tax. Mostrar todas las entradas

domingo, 11 de septiembre de 2016

Rethinking the real impact of "BEPS Project" or the end of the international tax planning era myth


After the subprime crisis (2008), the G-20 and the OECD prompted in 2013 an action plan to address abusive tax planning practices which cause countries base erosion and profit shifting (BEPS). They designed an international strategy against both aggressive and abusive international tax planning -which in my opinion are not the same- and decided to fight them with 15 actions.

Although these actions had obvious anti tax avoidance foundations -sustained in International Tax Law principles and fiscal international jurisprudence-, they clearly had also a moral and subjective approach.

Many of the tax planning strategies performed by multinational companies (MNCs) and exposed in BEPS project were completely legal (in the strict sense of law compliance or non violation of laws, of course) and even, in some cases, demonstrate potentially and creditable economic substance (assuming that a judicial process had begun) but still they were considered undesirable and harmful. Worse still, they were considered as immoral -rather than illegal- and, therefore, MNC´s become the enemies of the international tax system.