While the conceptual phase of the Base Erosion and Profit Shifting (BEPS) Process has been accomplished, it is now crucial to monitor its implementation and to alleviate some of the overly burdensome effects of the BEPS Project. In light of this, the International Chamber of Commerce, Business at OECD (BIAC) and BusinessEurope organized a discussion on June 30 in Munich, Germany on tax policy issues, with the aim to facilitate cross border trade by reducing double taxation, simplifying tax rules, strengthening tax payers´ rights, fostering a growth oriented tax policy and increasing tax certainty.
Business federations jointly brought together private sector leaders, OECD representatives, governments, international organizations, and leading academics to discuss Growth and Taxes. Business at OECD Secretary General Bernhard Welschke underlined how enhancing cooperation can help to achieve greater efficiency, certainty and effectiveness of rules, and support tax policies that foster economic growth.
USCIB Tax Committee Chair Bill Sample (Microsoft) served as a panel participant discussing the importance of tax certainty, especially by tax administrations, to encourage investment in a country. “Many non-tax factors impact business investment decisions so countries need to consider tax incentives as a lever to balance out the pluses and minuses of the non-tax factors,” said Sample during his panel. “Tax certainty may be equally or even more important than tax rates for many jurisdictions; and administrative tax certainty may be most important in many jurisdictions.”
The conference also discussed dispute prevention and approaches to support cooperative compliance, as OECD reports major progress towards a fairer and more effective international tax system, including a recently launched report to G20 leaders ahead of last week’s G20 Hamburg Summit.