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BEPS: Multinationals face trouble meeting the action plan

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Friday, February 5th, 2016.

Thomson Reuters, announced the results of a study of more than 180 business executives and directors of tax and transfer pricing in 35 countries; He boarded more than 20 industries to learn how multinational companies are reacting and preparing for the BEPS Action Plan.

Erosion of the tax base and the transfer of profits (BEPS) is a global problem, as such, requires global solutions. the need for greater international cooperation to combat these practices became evident at present. Therefore, since 2012 the Organization for Economic Cooperation and Development (OECD) working on the development of an action plan against erosion of the tax base and the transfer of benefits.

Among the key findings, it highlights that 25% of tax directors of the companies surveyed said that their companies do not comply with the first deadline proposed by the Organization for Economic Cooperation and Development (OECD). In turn, the study conducted by Thomson Reuters elucidates that European companies are more focused on BEPS the rest of their peers worldwide planning. Most companies based in Europe (59%) said it is actively preparing for BEPS, compared with 48% of companies in the Americas and Asia-Pacific.

"While many multinational corporations are preparing for BEPS, some are limited by scarce resources and others are taking a potentially dangerous expected focus and see what happens," said Brian Peccarelli, world president of the business area Tax & Accounting business of Thomson Reuters.

 During the study, the majority of respondents said that the requirements for transfer pricing, specifically the documentation and declarations country by country, are their greatest concern among all the shares of BEPS. Globally, 74% said they will complete their country by country analysis for the first date of maturity, December 31, 2017.

 In addition, two-thirds of respondents reported that their IT systems are not integrated with their transfer pricing policies, an issue that could expose them. On the other hand, 50% of respondents said their companies do not have a centralized database with intercompany policies and measures necessary to comply with the new requirements of transfer pricing documentation fiscal policies.

 "The erosion of the bases and the transfer of profits (BEPS) requires global solutions. In general, we can say that the action plan is aligned with BEPS process automation to mitigate risks and is especially important for developing countries development, "explains Maximiliano Romero, Business development for Thomson Reuters Southeast Regional Manager Andean region. "For this reason, even if there are already defined guidelines for compliance with BEPS in certain countries, of course, companies - especially multinationals - should be prepared to meet the demands that will arise as a result of this Plan of Action, as they depend more heavily on revenues from corporate taxes, "adds the specialist.

 For the full study, visit: