Release of a discussion draft on BEPS Action 3 (Strengthening CFC Rules)


03/04/2015 - Public Comments are invited on a discussion draft which deals with action 3 (Strengthening CFC Rules) of the BEPS Action Plan.


In July 2013, the Action Plan on Base Erosion and Profit Shifting directed the OECD to commence work on 15 actions designed to ensure the coherence of corporate income taxation at the international level. The first seven of these actions were presented to G20 Leaders at the Brisbane Summit in November 2014.


Action 3 of the BEPS Action Plan focuses on developing recommendations for the design of controlled foreign company (CFC) rules to combat base erosion and profit shifting.



Strengthen CFC rules

Develop recommendations regarding the design of controlled foreign company rules. This work will be co-ordinated with other work as necessary.


This discussion draft considers all the constituent elements of CFC rules and breaks them down into the “building blocks” that are necessary for effective CFC rules. The majority of these building blocks include recommendations, and the building block that does not yet include a recommendation discusses possible options that could be included in effective CFC rules. The discussion draft also identifies specific questions where input is required in order to advance the work on CFC rules. The options and recommendations included in this discussion draft do not represent the consensus view of the Committee on Fiscal Affairs (CFA) or its subsidiary bodies, but they are intended to provide stakeholders with substantive options for analysis and comment.


The Action Plan calls for this work to be completed by September 2015. As part of the transparent and inclusive consultation process mandated by the Action Plan, the CFA invites interested parties to send comments on this discussion draft.


Comments should be submitted by 1 May 2015 at the latest (no extension will be granted) by email to [email protected]. They should be addressed to Achim Pross, Head, International Co-operation and Tax Administration Division, OECD/CTPA.


Please note that all comments received regarding this consultation draft will be made publicly available. Comments submitted in the name of a collective “grouping” or “coalition”, or by any person submitting comments on behalf of another person or group of persons, should identify all enterprises or individuals who are members of that collective grouping or coalition, or the person(s) on whose behalf the commentator(s) are acting.


Public Consultation

A public consultation meeting on Action 3 will be held in Paris at the OECD Conference Centre on 12 May 2015. Details of how to submit comments on the discussion draft and attend the public consultation meeting are available on line: