Bloomberg Quotes David Rosenbloom: Google to Apple Could See Tax Loopholes Curbed in OECD Proposal
Caplin & Drysdale's H. David Rosenbloom spoke with Bloomberg Business concerning the Organization for Economic Cooperation and Development's (OECD) plan for cracking down on international tax avoidance. The group is seeking to curb tax haven use and other strategies by multinationals which the OECD says costs the world as much as $240 billion a year in lost revenue. BEPS, or the "base erosion and profit shifting" plan will create tensions between countries and companies over who gets taxed and where. For the full article, please go to Bloomberg's website.
Excerpt taken from the article.
"This is the most important development in international tax in quite a few decades," said H. David Rosenbloom, an attorney at Caplin & Drysdale in Washington and director of the international tax program at New York University's School of Law. "It will definitely make a difference. Exactly what that difference will be is hard to predict."
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Rosenbloom said he expects the new plan –- known by the acronym BEPS, for "base erosion and profit shifting" –- to trigger increased disputes between regulators and multinationals around the world.
"Countries are going to do all sorts of things in the name of BEPS," he said. In places like India, Brazil, China, Mexico and Canada, "you are going to see renewed aggressiveness in auditing of the multinationals," he said. "There's a lot of money involved here."