With the release of its report on 'Base Erosion and Profit Shifting' (BEPS), the OECD has launched a rigorous and systematic campaign against tax avoidance. As a result, asset managers will have to operate more transparently in future, for example, under the 'Country by Country' reportings. Here, all profits received and taxes actually paid, plus the number of employees, must be disclosed for each country.
As a direct consequence of BEPS, numerous offshore financial centres are raising the level of their relevant corporate value within their effective jurisdictions. The purpose of this is to conclude a double taxation agreement (DTA). This makes the current corporate value and the corresponding profitability of asset management companies in offshore centres more transparent.
As an asset manager, you will want to keep a watchful eye on BEPS developments in order to identify risks early on.
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