Framework Analysis of OECD’s Base Erosion and Profit Shifting

Base Erosion and Profit Shifting (BEPS) is one of the most imminent issues in international taxation that allows multinational companies to take advantage of loopholes and disparities in tax regulations in an attempt to transfer profits to nil or low-tax jurisdiction. The BEPS initiative by the Organisation for Economic Co-operation and Development (OECD) will be analyzed through a framework approach that explores at the conceptual base, main action plans and implementation in the economies. Through a qualitative analysis of OECD policies, the analysis evaluates the structural sufficiency of the BEPS framework in profit shifting behaviours. The results indicate the weaknesses of the multilateral strategy as well as certain gaps of implementation and inclusion in developing countries. Necessary policy implications of reforming the system to make it more effective in the global context is further concluded. This study forms contributes to an increasing expertise of research in the ethical taxation, fiscal sovereignty and sustainable international tax governance.