Surprisingly, even though these initiatives have been launched in an effort to get out in front of BEPS, the OECD is not a fan of the approach. He said he anticipates the measure will raise AU$350 million over the next four years. For example, under this plan Google would pay UK tax on revenue from ads that are clicked by users in the UK.Īustralian Treasurer Joe Hockey introduced similar legislation this month, which will levy a 25% tax on diverted profits. Quickly dubbed the “ Google Tax” by the UK press, it is meant to capture the tax revenue for goods and services consumed by UK-based customers in the UK. In March, the UK Treasury chief George Osborne introduced a Diverted Profits Tax, which is a 25% tax on foreign companies’ profits derived from economic activity in the UK. A couple of countries – notably the UK and Australia – have already begun to enact laws that preempt several of the BEPS ideals, even before the final BEPS road map is completed. So, while the OECD does have a clear-cut agenda and detailed deadlines it hopes to meet with its BEPS Action Plan, actual enforcement of these guidelines will be left up to individual countries.Īnd that’s where the BEPS story is starting to get interesting. Unlike Dodd-Frank or the Affordable Care Act, which were clear-cut laws enacted by Congress and signed by the President, BEPS is a series of suggestions made by a consortium of global government representatives that has no real legislative authority. While the ramifications have been obvious for tax geeks, the full implications of BEPS have not really been mainstream news thus far because of the unique nature of the OECD and the role it plays in the global marketplace. Beyond that, the new reporting guideline will require financial, sales and personnel information to help countries determine the value of the operations within their borders and how that should be reflected in taxes for that jurisdiction. Now, the full details of each companies’ tax payments to each country will be available globally in a standardized, shareable template. © 2023. For information, contact Deloitte Global.Previously, companies had to show only the transaction flow from one country to another. Members of Deloitte Asia Pacific Limited and their related entities, each of which are separate and independent legal entities, provide services from more than 100 cities across the region, including Auckland, Bangkok, Beijing, Hanoi, Hong Kong, Jakarta, Kuala Lumpur, Manila, Melbourne, Osaka, Seoul, Shanghai, Singapore, Sydney, Taipei and Tokyo. ![]() Please see to learn more.ĭeloitte Asia Pacific Limited is a company limited by guarantee and a member firm of DTTL. DTTL does not provide services to clients. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. ![]() DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organisation”).
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