2018 BEPS global survey
This is the fifth year that Deloitte has conducted the "OECD Base Erosion and Profit Shifting (BEPS) survey." The objective of this annual survey has been to gauge the views of multinational companies regarding the Global Tax Reset and the OECD's Base Erosion and Profit Shifting (BEPS) initiative, and the expected impact on their organizations. The 2018 survey focused on understanding how multinationals' perspectives on BEPS and the tax landscape have evolved.
Preparing for BEPS
The responses from this year's survey show that companies are continuing to focus on preparing for BEPS with the boards becoming more engaged in tax governance matters. While most of the respondents expect significant impacts from BEPS, they had not yet implemented any major BEPS-related changes to their businesses, as many of the legislative measures only come in force in 2019–2020. Key findings from the survey indicate that:
- 91 percent of respondents expect that the additional transfer pricing reporting requirements resulting from the OECD BEPS recommendations will substantially increase their corporate tax compliance burden (only 21 percent expect consistent interpretation of the new guidelines among tax authorities in different countries);
- 86 percent of respondents believe that tax structures implemented today are under greater scrutiny by tax administrations now, than they would have been a year ago;
- 85 percent of respondents are concerned that tax authorities will, irrespective of any actual legislative changes, increase tax audit assessments as a result of the current BEPS debate;
- 80 percent of the respondents expect public country-by-country reporting to be adopted in the next few years;
- 76 percent of respondents are concerned about the media, political, and activist group interest in corporate taxation, and note that their C-suite has become actively engaged in developing the organization’s tax strategy and in monitoring risk in this area;
- 48 percent of the respondents are concerned about lack of domestic guidance on the BEPS-related legislative changes.
The rapidly changing tax environment definitely poses many challenges—but, also opportunities—for multinationals and their tax functions. Find out more about BEPS and the Global Tax Reset or download the full survey now.