In July 2013, the OECD published an Action Plan on Base Erosion and Profit Shifting (BEPS) which identified 15 actions to address concerns about tax planning by multinational enterprises that make use of gaps in the interaction of different tax systems to artificially reduce taxable income or shift profits to low-tax jurisdictions.

The OECD has now released for public consultation a draft discussion paper on Action 1 of the BEPS Action Plan focusing on the tax challenges of the digital economy. Among other things, the discussion paper provides a detailed description of the core elements of BEPS strategies in the digital economy, and discusses how the development of the measures envisaged in the BEPS Action Plan and the OECD work on indirect taxation are expected to address them.

COMMENTS are due by 14 April 2014

[LTN 57, 25/3/14]