This policy briefing explains why base erosion and profit shifting is a threat for developed and, especially,developing countries, and it provides a number of recommendations to the G20 and the OECD. In particular, we call upon the G20 and the OECD to:
1. Take effective steps to ensure that developing countries can participate in the BEPS process on an equal footing, and assist them in implementing measures to stem their losses from international tax avoidance that deprives governments of badly needed revenues.
2. Undertake - jointly with other organisations, policy makers from developing and developed countries, and independent experts - a rigorous study of the merits, risks and feasibility of more fundamental alternatives to the current international tax system, such as unitary taxation, with special emphasis on the likely impact of these alternatives on developing countries.
3. Implement additional measures to tackle financial and corporate secrecy, including the requirement for TNCs to provide public combined and country by country reports, the establishment of comprehensive multilateral automatic exchange of tax information, and the public disclosure of the beneficial owners of companies, foundations and trusts.