‘Vulnerabilities’ challenge international tax reform consensus, experts say

The OECD’s base erosion and profit-shifting project has made surprisingly good progress but there are signs that increasing tax competition and a changeable political landscape may begin to erode a fragile consensus, according to a leading international tax expert.

Richard Collier, associate fellow at the Said Business School and a former PwC partner, told a June 30 conference hosted by the University of Oxford’s Centre for Business Taxation, that he agreed with the OECD’s view that the BEPS project reflected “an unprecedented level of global cooperation and consensus.”

There is also consensus in the development of the inclusive framework for implementation of BEPS outcomes, in support for the multilateral instrument, and in the “massive expansion” in transparency and sharing of information, he noted. While that consensus might suggest a trend against tax competition, Collier suggested that some “vulnerabilities” make the foundation of this apparent consensus “less than rock solid.” Read more:

My news story for Tax Analysts, July 6 (paywall)