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The Final OECD BEPS Tome Has Arrived

October 8, 2015

Remarkably on schedule, the OECD this week issued a comprehensive and integrated set of measures to attack base erosion and profit shifting (BEPS) on a global basis.  Comprising 15 "Actions" on central issues such as transfer pricing, country-by-country reporting and transfer pricing documentation, treaty abuse, preferential tax regimes, permanent establishments, hybrid arrangements, cross-border dispute resolution, and implementation, this massive undertaking achieved consensus among all OECD and G20 countries on most major issues.  Developing countries and other international and regional tax organizations also participated actively. 

Per the Foreword to the final reports, "The BEPS package of measures represents the first substantial renovation of the international tax rules in almost a century."  However one characterizes the outcome – there will be many different views – the product cannot be ignored and will have significant impacts on planning and operation of international businesses.  Some aspects will fall into place more quickly than others.  On the transfer pricing front, for example, it is our impression that the IRS intends to comply with the BEPS directive to disclose to affected treaty partners any U.S. unilateral APAs issued on or after January 1, 2010, and in effect on or after January 1, 2014.  Many of the conclusions and recommendations of the reports will, however, require changes to domestic laws or renegotiation of existing treaties.  In the latter regard, a multilateral instrument is in the works to speed the process and maximize uniformity. 

It will take businesses and practitioners time to digest and evaluate the final BEPS tome, some 1600 pages in all.  This email is, precisely, an Alert – we will not attempt here to summarize the various provisions or provide insights.  The OECD has helpfully published a compilation of the Executive Summaries from the 15 final reports, which is a fine starting point to identify aspects of particular interest; it can be found at http://www.oecd.org/ctp/beps-reports-2015-executive-summaries.pdf.  And your inbox undoubtedly will quickly fill with synopses, analyses, seminars, and the like from multiple sources.

Caplin & Drysdale's International Tax Group has closely followed the BEPS project as it has evolved over the past two years and is immersed in the final reports.  We will be working with individual clients to evaluate the impact on their activities, and welcome the opportunity to consult on pertinent aspects.  Please contact any of the attorneys below for assistance with understanding the OECD BEPS final reports and their implications. 

H. David Rosenbloom
drosenbloom@capdale.com
202.862.5037

Patricia Gimbel Lewis
plewis@capdale.com
202.862.5017 

J. Clark Armitage
 carmitage@capdale.com
202.862.5078 

Peter A. Barnes
pbarnes@capdale.com
202.862.5027

Neal M. Kochman
nkochman@capdale.com
202.862.5024

Kirsten Burmester
kburmester@capdale.com
202.862.7826

Mark D. Allison
mallison@capdale.com
212.379.6060

Stafford Smiley
ssmiley@capdale.com
202.862.5093

 

Jonathan S. Brenner
jbrenner@capdale.com
212.379.6050

 

Richard W. Skillman
rskillman@capdale.com
202.862.5034  

 

Michael G. Pfeifer
mpfeifer@capdale.com
202.862.5085

 

Dianne C. Mehany
dmehany@capdale.com
202.862.5068


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About Caplin & Drysdale
Having celebrated our 50th Anniversary in 2014, Caplin & Drysdale continues to be a leading provider of tax, tax controversy, and litigation legal services to corporations, individuals, and nonprofits throughout the United States and around the world. We are also privileged to serve as legal advisors to accounting firms, financial institutions, law firms, and other professional services organizations.

The firm's reputation over the years has earned us the trust and respect of clients, industry peers, and government agencies. Moreover, clients rely on our broad knowledge of the law and our keen insights into their business concerns and personal interests. Our lawyers' strong tactical and problem-solving skills - combined with substantial experience handling a variety of complex, high stakes, matters in a boutique environment - make us one the nation's most distinctive law firms.

With offices in New York City and Washington, D.C., Caplin & Drysdale's core practice areas include:

-Bankruptcy
-Complex Litigation
-Corporate Law
-Corporate, Business & Transactional Tax
-Employee Benefits
-Exempt Organizations

-International Tax
-Political Law
-Private Client
-Tax Controversies
-Tax Litigation
-White Collar Defense

For more information, please visit us at www.caplindrysdale.com.

Washington, DC Office: 
One Thomas Circle, NW
Suite 1100
Washington, DC 20005
202.862.5000

       

New York, NY Office:
600 Lexington Avenue
21
st Floor 
New York, NY 10022
212.379.6000

 ___________________________

Disclaimer
This communication does not provide legal advice, nor does it create an attorney-client relationship with you or any other reader. If you require legal guidance in any specific situation, you should engage a qualified lawyer for that purpose. Prior results do not guarantee a similar outcome.

Attorney Advertising
It is possible that under the laws, rules, or regulations of certain jurisdictions, this may be construed as an advertisement or solicitation.

© 2015 Caplin & Drysdale, Chartered
All Rights Reserved.

________________________________________________

About Caplin & Drysdale
Having celebrated our 50th Anniversary in 2014, Caplin & Drysdale continues to be a leading provider of tax, tax controversy, and litigation legal services to corporations, individuals, and nonprofits throughout the United States and around the world. We are also privileged to serve as legal advisors to accounting firms, financial institutions, law firms, and other professional services organizations.

The firm's reputation over the years has earned us the trust and respect of clients, industry peers, and government agencies. Moreover, clients rely on our broad knowledge of the law and our keen insights into their business concerns and personal interests. Our lawyers' strong tactical and problem-solving skills - combined with substantial experience handling a variety of complex, high stakes, matters in a boutique environment - make us one the nation's most distinctive law firms.

With offices in New York City and Washington, D.C., Caplin & Drysdale's core practice areas include:

-Bankruptcy
-Business, Investment & Transactional Tax
-Complex Litigation
-Corporate Law
-Employee Benefits
-Exempt Organizations
-International Tax
-Political Law
-Private Client
-Tax Controversies
-Tax Litigation
-White Collar Defense

For more information, please visit us at www.caplindrysdale.com.

Washington, DC Office:
One Thomas Circle, NW
Suite 1100
Washington, DC 20005
202.862.5000
        New York, NY Office:
600 Lexington Avenue
21st Floor 
New York, NY 10022
212.379.6000

___________________________

Disclaimer
This communication does not provide legal advice, nor does it create an attorney-client relationship with you or any other reader. If you require legal guidance in any specific situation, you should engage a qualified lawyer for that purpose. Prior results do not guarantee a similar outcome.

Attorney Advertising
It is possible that under the laws, rules, or regulations of certain jurisdictions, this may be construed as an advertisement or solicitation.

© 2017 Caplin & Drysdale, Chartered
All Rights Reserved.