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Poll: US business executives cite concerns and priorities for OECD's final BEPS package

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Compliance, double-taxation top the list.

Business executives cited an increased compliance burden as their biggest concern with the Organization for Economic Cooperation and Development's Base Erosion and Profit Shifting initiative (37.7%), according to an October poll by professional services firm Deloitte. Other concerns included double taxation of income (17%) and an increased effective tax rate in income from cross-border transactions (14.9%).

"The tax law changes resulting from the OECD's work will introduce a host of new issues and challenges for companies in the United States," said Tom Driscoll, U.S. managing partner for international tax, transfer pricing, and indirect tax, Deloitte Tax LLP. "To identify and address areas of concern, businesses should analyze the impact of the proposals to evaluate business model and treasury impacts, as well as develop compliance strategies when vulnerabilities are identified."

Businesses should be aware that the changes from BEPS that will have the biggest impact on US businesses are going to come from outside our borders."

The OECD released its final BEPS package in October, which includes and consolidates the first seven reports presented last fall and includes all 15 Actions of the BEPS project. Of the Actions presented, the poll found that country-by-country reporting topped the list of priorities for organizations (30.6%). The cost of compliance is also a significant concern for respondents in regard to country-by-country reporting (26.8%).

Congressional action in response to the BEPS project is uncertain, and similarly, respondents were split on the impact the BEPS project will have on US tax reform. One-third said the BEPS project strongly impacts and emphasizes the need for comprehensive business tax reform, while one-quarter said it has not impacted the debate enough to make the case for tax reform.

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