Landmark changes to international tax rules flagged under latest OECD consultation

Feb 18, 2019

The OECD recently launched a public consultation on key concepts of the international tax system.  According to the OECD, the consultation is part of a process seeking to reform international tax rules with the backing of more than 110 jurisdictions and the G20.

The current consultation follows on from the OECD’s Policy Note published on 29 January.  The Policy Note was framed in terms of the international challenge of taxing the digital economy. However the focus of this recent consultation looks beyond the digital economy and seeks views on new methods of profit allocation in place of the traditional management and control concept and economic substance test.  The consultation paper poses questions which explore a new approach to profit attribution for intangible assets and the introduction of a minimum rate of tax for multi-national companies. 

The consultation period closes on 1 March 2019 with planned public meetings with stakeholders to be held in Paris on 13-14 March 2019.  The OECD plans to proceed with an outline design of measures for review and approval by the G20 Finance Ministers in June 2019. If the G20 approve the outline measures, the OECD intends to develop technical and implementing solutions for adoption by countries by the end of 2020. 

Chartered Accountants Ireland under the auspices of the CCAB-I will be participating in this consultation and we are interested in hearing the views of our members via email to tax@charteredaccountants.ie by 22 February.