EY statement in response to the Organization for Economic Co-operation and Development (OECD) reports concerning the base erosion and profit shifting (BEPS) project

LONDON, Oct. 5, 2015 /PRNewswire/ -- EY releases a statement from its Global Vice Chair - Tax, Jay Nibbe, in response to the OECD's announcement about the BEPS project:

"The final reports released today relating to the G20 and OECD project on base erosion and profit shifting (BEPS) include recommendations for potentially dramatic changes in international tax laws and treaties. Attention will now turn to the response by countries to these recommendations. As the global focus on BEPS enters this next phase, it is more important than ever for the OECD, governments and the business community to work together constructively on implementation of the BEPS recommendations and on development of the infrastructure that will be needed for administration and compliance with respect to any new tax rules. We believe that clarity in the new rules and consistency in application will be essential in mitigating the potential disruption to cross-border business activity that change of this magnitude could bring. Additional procedures for preventing and resolving disputes will be a welcome component of any action to address BEPS.

"For businesses, the pace, volume and complexity of tax change create uncertainty and increased risk of tax disputes. The BEPS recommendations also include significant new tax compliance obligations. Companies will need to invest in their tax function - both people and technology - to ensure they have the resources to meet these new demands.

"Tax authorities also need to be prepared for change. It is critical that governments devote the resources necessary to administer the tax system effectively, and to provide taxpayers with the guidance they need in interpreting and applying new rules. Without the necessary resources and support, the intended objectives of the BEPS initiative could be overwhelmed by increased controversy and cost of compliance."