The real potential of the BEPS program Essay

continued reliance on corporate tax and more so for multinational enterprises (OECD 1999).
Research conducted in 2013 proved the real potential of the BEPS program because a total of about 4-10% had already been incurred by the corporate income tax subscribers before then. In the broad context of domestic tax, the principle of matching is realized. In this case, a payment that is usually deductible by the payer is often taxable on the sides of the recipients, unless this is explicitly exempted and by so doing, coherence is achieved (Moll 2014). With this project, however, there is principle of coherence at the international level, which results in a lot of room by the taxpayers for arbitrage. However, the sovereign states have already co-operated to ensure that there is a narrow field that prevents double taxation.
OECD'S 2013 on how to curb the Tax Havens
It has been recognized since 1920 that the interaction of the domestic tax systems can easily lead to overlaps in the taxing rights exercise, which can result in double taxation. The BEPS has thus stepped in to solve the challenges where different tax rules have resulted to double, non-taxation or rather less than single taxation. It also relates to the plans that realize no or lower taxation shifting the profits away from their regions of jurisdictions. If the BEP's Action plan fails to bring up effective and efficient solutions in a timely manner, then some countries which upon persuasion shall take a step for unilateral action for protecting their tax bases. This could result in avoiding the uncertainty as well as being unrelieved from double taxation.
The G20 ministers in a conference called the OECD so that they could develop an action plan to address the issues of BEPS in a comprehensive manner (Mordue, Swaddle & Philip 2016). The OECD has been on the frontline for ensuring effective exchange of information between the international tax corporations. This has ensured that there is transparency in sharing of tax information and has improved the tax authorities in their ability to deter, detect or disrupt tax diversion and at the same time minimize chances of task avoidance. The OECD exchange of information has thus made it possible for taxpayers to be able to obtain and exchange information freely and willingly through an automated process that is efficient and effective to organizations.
Conclusion
It is evident from the analysis that introduction of the FATCA (2010) and the use of the OECD report of the 2013 has aided greatly in setting out control systems that managed the Tax havens in the United States. The FATCA has ensured that individuals annually file their foreign tax returns without fail to the Financial Crimes Enforcement Network (FINCEN) of which there are severe consequences for the tax evaders. The OECD report of 2013 on the hand has provided a platform that information regarding the foreign account investments is furnished with the US authorities and other concerned authorities such that there is realized transparency and accountability.