"BEPS: Success doomed to failure"

The OECD's BEPS (Base Erosion and Profit Shifting) project aims to prevent tax avoidance by large multinational corporations. In practice, however, it also affects small companies with cross-border activities. The measures are neither democratically legitimized nor easy to understand, even for tax experts. The project aims to harmonize tax law in different countries, but this could jeopardize national tax autonomy and is likely to meet with resistance.

Countries such as Switzerland and Liechtenstein, which are actively involved in the discussions, could be among the losers of the development. Despite their efforts, they will not be able to prevent the implementation of BEPS measures. Rich countries such as the USA, Germany and the UK are increasingly realizing that they could be hurting their own interests. Although the 15 BEPS action points pursue sensible concerns, the project as a whole could fail.

Topics in the publication

• BEPS project of the OECD
• Effects on small companies
• Legitimation problems
• Harmonization of tax law
• Resistance and conflicts of interest
• Successes and risks
• Specific country perspectives
• Long-term prospects