BEPS project update – Pacific Asia developments
Asian countries are actively taking part in the Organisation for Economic Cooperation and Development (OECD)’s plan to halt tax avoidance and evasion. The OECD’s Action Plan is far reaching and will help support local Asian countries’ tax systems in order to protect tax bases against base erosion and profit shifting, which is in the origin of the popular term BEPS.
Prominent economies like China, Indonesia, Japan and neighbours Australia and New Zealand, are developing responses in line with the BEPS project. New bilateral tax agreements are being agreed, but the objective of the BEPS project is precisely to reduce the need for new treaties by encouraging a system that inherently considers cooperation on tax matters between jurisdictions.