Clifford Chance
BEPS - The Final Report
5 October 2015
The OECD has published the final package of recommendations to reform the international tax system – the "BEPS" Project.
Our initial view is that on the face of it the recommendations would have a profound impact on many businesses (even those that don't operate cross-border). The changes to treaty relief, interest deductibility and permanent establishment changes will have particularly wide implications. However, despite being labelled as the "final" recommendations, in reality much remains up in the air – the big questions are which countries will implement at all, which elements will they choose to implement, and which countries will ignore the process entirely.
Our analysis of the recommendations, and their likely practical impact, is as follows:
- Overview – the final 15 BEPS recommendations (see attachment below)
- Analysis – hybrid mismatch arrangements (Action 2)
- Analysis – interest deductibility (Action 4)
- Analysis – treaty abuse (Action 6)
- Analysis – permanent establishment (Action 7)
