Caplin & Drysdale's Peter A. Barnes
spoke with Law360
concerning the changes multinational corporations will need to make in order to comply with the Organization for Economic Cooperation and Development's (OECD) base erosion and profit shifting (BEPS) project which is scheduled to wrap in 2015. Increasingly challenging international tax landscape is causing some countries to taking unilateral action to tax multinationals' income. For more on the story, please visit Law360's website
(subscription required). Excerpt taken from the article.
A multinational could easily be located in more than 75 countries, and the way a company maintains its records on employees, assets, income and taxes paid is probably done legal entity by legal entity rather than country by country, Barnes said. Companies need to be looking at their IT tools and other data repositories within the company and figuring out how to put that information together, he said.
. . .
For example, if a company is operating in neighboring countries such as Malaysia and Thailand and the data on assets, revenues, employees and tax payments look anomalous when compared side-by-side, the tax examiner is going to have some questions, Barnes said.