The Davis Tax Committee: BEPS Report
The Davis Tax Committee has released its First Interim Report on Base Erosion & Profit Shifting (BEPS), including an introductory document and comprehensive analyses of the following BEPS Action Items:
- 1, Digital Economy
- 2, Hybrid Mismatches
- 5, Harmful Tax Practices
- 6, Treaty Abuse
- 8, Transfer pricing re: intangibles
- 13, Transfer pricing documentation
- 15, Multilateral instrument
- Summary of recommendations
The Committee’s objective is to assess South Africa’s tax policy framework and its role in supporting the objectives of inclusive growth, employment, development and fiscal sustainability. Links to the Media Statement, Davis Tax Committee’s website and Report are provided for reference:
Click to access 20141223%20Davis%20Tax%20Committee%20Media%20Statement%20-%20Release%20of%20BEPS%20Report%20for%20Public%20Comment.pdf
Comments by all interested parties should be submitted by 31 March 2015.
The documents are a valuable reference in comprehending each of the OECD BEPS Action Items of the Report, not only the viewpoint of S. Africa. Most importantly, it outlines the tax policies for continued foreign direct investment balanced against BEPS and General Anti-Avoidance Rule (GAAR) initiatives, while providing tax transparency and certainty with a balanced, sustainable tax policy going forward.