Remarks by Angel Gurría
27 January 2016
(As prepared for delivery)
Dear Ministers, Excellencies, Ambassadors, Ladies and Gentlemen,
Last year’s agreement on the BEPS package was a historic moment for the global tax system. All 44 OECD and G20 countries, and more than a dozen developing countries, have jointly developed a comprehensive approach to tackling the loopholes that have undermined the integrity of our corporate tax systems for years. And the benefits of action are significant – left unaddressed, BEPS would continue to undermine global tax revenues by up to one quarter of a trillion US dollars annually!
Tonight marks an important step in the next stage of BEPS: implementation, implementation, implementation! Without effective implementation, we risk consigning the BEPS reports to books gathering dust on shelves. That is why your efforts to transform the BEPS agreement into reality – evidenced by your signature of the Multilateral Competent Authority Agreement (MCAA) for the automatic exchange of country‑by-country reports – are so important.
Country-by-country reports are a critical risk assessment tool. By facilitating the exchange of information between tax administrations, these reports provide a timely, single, global picture on the key indicators – profits, tax and economic activities – of multinational businesses. Armed with this information, tax administrations are better placed to assess transfer pricing and other BEPS risks, and deploy audit resources where they will be most effective. This would simply not have been possible without the BEPS Project.
I congratulate the 31 countries that are signing tonight’s agreement for your commitment to strengthening cross-border co‑operation on tax. And I look forward to welcoming the next wave of signatories to this important agreement. Much more remains to be done, and the OECD stands ready to support your efforts to implement the remaining BEPS measures.
Ladies and gentlemen, thank you for joining us tonight to acknowledge this important step forward in the BEPS Project. Thank you also for your efforts at this week’s CFA meeting to advance implementation of the BEPS Project even further.