“The release of the final package of the OECD’s Base Erosion and Profit Shifting (BEPS) measures is an important next step in the modernisation of global tax arrangements,” Business Council of Australia Chief Executive Jennifer Westacott said.
“The 21st century world economy, with its increasing globalisation and digitisation, has challenged long-standing international tax conventions. These global issues require a global solution, which is why the success of the BEPS process is important,” Ms Westacott said.
“It’s important we heed the warning from the OECD that countries which act alone on global tax issues do so at their own peril. As the BEPS Action Plan notes:
“The emergence of competing sets of international standards, and the replacement of the current consensus based framework by unilateral measures, could lead to global tax chaos marked by the massive re-emergence of double taxation.”
“It’s clear the global economy is profoundly different from the world envisaged by the existing tax arrangements in individual countries. We are now dealing with disintermediated supply chains, global manufacturing processes, and an unprecedented movement of capital and labour.
“We support the intent of the OECD process to come to grips with these challenges.
“The Business Council will work with the government, including through the tax reform process, to carefully consider the OECD’s suggested changes.
“Changes in this area need to avoid unduly deterring investment, reducing our competitiveness or creating unnecessarily complex tax arrangements. However, we must act to shore up the integrity of, and community confidence in, global tax arrangements.
“We should also recognise Australia’s strong starting position, with some of the toughest tax integrity measures in the world, which together with high levels of compliance and enforcement, contribute to large corporate tax revenues,” Ms Westacott said.
For further information contact:
Scott Thompson, Director, Media and Public Affairs
Business Council of Australia
Telephone (03) 8664 2664 • Mobile 0403 241 128