New York, N.Y., July 19, 2013 – Responding to a much-anticipated report to the G20 governments from the Organization for Economic Cooperation and Development (OECD) on possible changes to global taxation rules, the United States Council for International Business (USCIB) said the report reinforces the business community’s position on compliance with existing tax rules and the need for reform.
The OECD today submitted its action plan to tackle “base erosion and profit shifting” (BEPS) to G20 finance ministers meeting in Moscow, fulfilling a request by the G20 leaders at their summit last year in Los Cabos, Mexico.
“The OECD recognizes that most tax planning complies with current rules,” said Carol Doran Klein, USCIB’s vice president for tax policy. “The report states that BEPS is not primarily an issue of tax compliance.”
Klein said USCIB supports regular review by governments to ensure their tax policies are fit for purpose. “Indeed, the U.S. tax system is in need of fundamental reform, particularly in the international area,” she said. USCIB and its partner business groups overseas believe that a consensus-based approach is most appropriate, rather than a piecemeal approach, which would likely increase double taxation. “The OECD, with its resources and the analytical ability to look at these complex issues is the best place to build consensus on these complex issues,” said Klein.
Throughout the development of the BEPS report, USCIB has worked closely with the Business and Industry Advisory Committee
(BIAC) to the OECD, which officially represents the view of industry in the Paris-based body, and for which USCIB serves as the U.S. member federation. BIAC has also issued a statement regarding the BEPS report, available here.
Bill Sample, corporate vice president for worldwide tax with Microsoft and chair of the USCIB Tax Committee, stated: “USCIB and it members look forward to working with BIAC and the OECD on this timely and important review of the application of current tax policies to multinational businesses. The factors driving the need for U.S. tax reform also impact the international tax system.”
Last month in Washington, D.C., the OECD, BIAC and USCIB jointly held the 8th annual OECD International Tax Conference, which featured an in-depth discussion of BEPS along with other important global tax policy topics. More information on that event is available here.
About USCIB:
USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. With a unique global network encompassing leading international business organizations, including BIAC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More information is available at www.uscib.org.
Contact:
Jonathan Huneke, VP communications, USCIB
+1 212.703.5043 or jhuneke@uscib.org
More on USCIB’s Taxation Committee
As we reported