OECD, BEPS, Tax Justice Network find mention in South African Budget
OECD's Base Erosion & Profit Shifting (BEPS) project clearly has a significant imprint on national budgets presented by many countries, including particularly the developing countries. South African Finance Minister who presented the annual budget yesterday (February 24), too has referred to strong measures taken by South Africa against treaty & transfer pricing abuse.
In his speech, Mr Pravin Gordhan said "We will continue to act aggressively against the evasion of tax through transfer pricing abuses, misuse of tax treaties and illegal money flows. Drawing on the work of the OECD, the G20 joint project on base erosion and profit shifting and independent bodies such as the Tax Justice Network, further measures will be taken to address such revenue losses, including inappropriate use of hybrid debt instruments." He further stated that "With effect from 2017, international agreements on information sharing will enable tax authorities to act more effectively against illicit flows and abusive practices by multinational corporations and wealthy individuals." The South African FM has also warned taxpayers who still have undisclosed assets abroad that the "time is now running out...". The full text of the speech is available at - http://www.treasury.gov.za/documents/national%20budget/2016/speech/speech.pdf . South African Budget has kept corporate and personal tax rates unchanged.
With over dozen countries already implementing some of the BEPS proposals in their domestic laws, all eyes will be on Indian Finance Minister who shall present the Union Budget on Monday (Feb 29).