Rumour reaches me that Pascal St Amans of the OECD when speaking at the pro-tax haven and anti-corporation tax Oxford Centre for Business Taxation yesterday confirmed that there was no prospect of the OECD changing the rules of international taxation to replace the utterly discredited arm's length transfer pricing rules that have permitted so much recent tax abuse and which, in the OECD's own words, threaten the integrity of the world's corporate tax systems.
In which case it looks like the OECD wants the threat to become a reality.
It also looks like Jesse Drucker's suggestion in Bloomberg that the OECD has been captured by large corporations to act in their interests is right.
And in the meantime Osborne will say tomorrow that his support for the OECD means he's tackling tax avoidance, which is and always have been a starightforward misrepresentation of the truth.
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Did anyone belive that the OECD had a will to change anything after reading their last opus on BEPS?
The whole text is a lot of words on how each individual state should do as best it can. The only issue that is not mentioned is the tool that the OECD actually can do something with, the model tax treaty. But then you would risk accomplishing something, like taxation of MNEs
Richard, I was not surprised when I read this post. I would say that most, if not all, of the global and multinational institutions have been ‘captured’ by corporate interests – the IMF, World Bank, WTO, EC and yes OECD are not representing the interests of the bulk of humanity. Organisations like the OECD will pay lip service to the idea of fighting tax avoidance and tax evasion.
This I’m afraid is the enormity of the battle in front of us.