G20 Finance Ministers reiterate call for an inclusive framework for BEPS implementation
In a communique issued at the conclusion of a recent meeting held in Shanghai, China, the Finance Ministers reaffirmed their commitment to the timely implementation of the BEPS Action Plans noting that it will create “fairness and level playing field” in international taxation .
Perhaps in reaction to the ongoing disquiet within the developing countries on the inclusiveness of the whole process, the Ministers “encouraged the non-G20 to join on equal footing”. What this means is not clear but there have been commendable attempts by the OECD Task Force on Tax and Development to provide a platform for engagement between developed and developing economies with a view to addressing some of the emerging concerns.
These notwithstanding, the implementation of the BEPS packages remains a tall order for the developing economies who not only lack the requisite institutional and legal framework but also the technical expertise of the tax officials. The Ministers are alive to these constraints and have called for the various international agencies to consider a joint platform for “effective implementation of technical assistance”. China, which holds the current G20 Presidency, has pledged to establish an international tax policy research centre to further boost capacity building in developing countries.