Companies need to act now against tax avoidance
It's too risky to take a "wait and see" approach to BEPS as Singapore formally joins hands with other governments to tackle tax avoidance.
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THE biggest evolution in tax is upon us - locally. Last week, Singapore announced that it would become a Base Erosion and Profit Shifting (BEPS) Associate and formally unite with other governments to implement a number of measures against tax avoidance.
Firstly, let's dispel a couple of misconceptions. For one, BEPS is more than just tax; its impact can influence decisions around almost any non-tax aspect of the business. Secondly, BEPS is not just of concern to large multinationals in the Group of Twenty (G-20) or Organisation for Economic Co-operation and Development (OECD) member countries. It affects any company that has cross-border businesses and operations, regardless of size or country of origin.
Companies in Singapore are obviously not immune to international tax reforms given the openness of its economy. With the country committed to specifically implementing the OECD's BEPS standards on countering harmful tax practices, preventing treaty abuse, transfer pricing documentation, and enhancing dispute resolutions, companies need to prepare themselves for this new tax reality.
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