International tax & business 2014

From local GST loophole to the worldwide BEPS problems

Source: The Tax Specialist Journal Article

Published Date: 1 Oct 2014


Over the past decades, nations have cooperated and implemented measures to prevent double taxation that occurs due to overlap of local jurisdictions. However, as company structures become more sophisticated, these measures now provide opportunities for business taxpayers to reduce or totally eliminate their tax liabilities. The rapid development of e-commerce has further complicated this problem. Several international groups have commenced co-ordinated work to address these base erosion and profit shifting (BEPS) problems. While BEPS is a global issue, there have been discussions in Australia that BEPS issues are affecting the local economy as well.

This article Identifies local and global BEPS issues, suggests possible remedies for these issues, and discusses whether the analysis and recommendations suggested by the OECD could be applied in Australia. The analysis in this article focuses in particular on the local GST loophole constituted by the lower value threshold on imports from overseas retailers.

Author Profile
Maggie Mei-Ki Shiu

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International tax & business 2014

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