Preventing BEPS in Finland
Sourinthone, Aksone (2017)
Haaga-Helia ammattikorkeakoulu
2017
All rights reserved
Julkaisun pysyvä osoite on
http://urn.fi/URN:NBN:fi:amk-201705036217
http://urn.fi/URN:NBN:fi:amk-201705036217
Tiivistelmä
In the recent years, the focus on multinationals’ tax avoidance schemes or Base Erosion & Profit Shifting (BEPS) has been increasing constantly. The OECD and the European Commission are working on new tax rulings to counter those harmful practices.
The report aims to analyse and assess the anti-BEPS package: what does it contain, how can it be effective on the European level and how is Finland implementing the new recommendations? The analysis was a desktop study: peer-reviewed articles, legislation documents, relevant literature and email interview were used for this research.
This study presents the subtle difference between tax avoidance and tax evasion. It also shows what kind of tax structures companies are using to minimise their tax, with examples of two companies. It details the OECD’s anti-BEPS package with a focus on two out of fifteen action plans.
This assessment demonstrates that the anti-BEPS package is not perfect nor the real needed overhaul of the outdated tax system. However, it is a necessary first step in the right direction to counter harmful practices. Finland has started implementing the OECD’s recommendations and the European Union’s Anti-Tax Avoidance Directive (ATAD). This implementation faces diverse challenges. It has created confusion and uncertainty amongst Finnish companies and the tax administration. The difficulties come from the interpretation of those action plans, the lack of cooperation between countries and the different timelines in implementing them throughout the world.
The benefits linked to the new rulings will take some time to appear. The work on the matter will continue for the Finnish Tax Administration. It must be done hand in hand with the other tax administrations. Those actions will be more effective if all the countries were to collaborate. In a couple of years, new assessments must be made to evaluate the situation and work on the new solutions.
The report aims to analyse and assess the anti-BEPS package: what does it contain, how can it be effective on the European level and how is Finland implementing the new recommendations? The analysis was a desktop study: peer-reviewed articles, legislation documents, relevant literature and email interview were used for this research.
This study presents the subtle difference between tax avoidance and tax evasion. It also shows what kind of tax structures companies are using to minimise their tax, with examples of two companies. It details the OECD’s anti-BEPS package with a focus on two out of fifteen action plans.
This assessment demonstrates that the anti-BEPS package is not perfect nor the real needed overhaul of the outdated tax system. However, it is a necessary first step in the right direction to counter harmful practices. Finland has started implementing the OECD’s recommendations and the European Union’s Anti-Tax Avoidance Directive (ATAD). This implementation faces diverse challenges. It has created confusion and uncertainty amongst Finnish companies and the tax administration. The difficulties come from the interpretation of those action plans, the lack of cooperation between countries and the different timelines in implementing them throughout the world.
The benefits linked to the new rulings will take some time to appear. The work on the matter will continue for the Finnish Tax Administration. It must be done hand in hand with the other tax administrations. Those actions will be more effective if all the countries were to collaborate. In a couple of years, new assessments must be made to evaluate the situation and work on the new solutions.