Profit Shifting – NBC Institute

ATAX – Nov 2021 – L3 – Q6 – International Taxation

Explains BEPS, its techniques, OECD initiatives, and implications for corporate tax strategies.

Question

At a workshop on “Base Erosion and Profit Shifting (BEPS)” organized by the Federal Ministry of Industries, a resource person explained that BEPS is a corporate tax planning strategy used by multinational corporations to “shift” profits from higher-tax jurisdictions to lower-tax jurisdictions, thereby eroding the tax base of the higher-tax jurisdictions.

One of the participants, an engineer and the General Manager of a leading manufacturing outfit based in Jos, with a head office in a European country, struggled to understand the concepts discussed. After seeking clarification from other participants without success, he approached you as the company’s Tax Manager to explain BEPS and whether it would be beneficial for the company (in collaboration with the head office) to engage in such practices.

Required:

As the company’s Tax Manager, you are to draft a paper addressing the General Manager’s concerns, covering the following:

a. Distinction between base erosion and profit shifting. (3 Marks)
b. Techniques of base erosion and profit shifting. (4 Marks)
c. The six key action initiatives of the Organisation for Economic Co-operation and Development (OECD) against base erosion and profit shifting. (6 Marks)
d. The implications of engaging in base erosion and profit shifting. (2 Marks)

Answer

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Tags: BEPS, Corporate Tax Strategy, OECD Initiatives, Profit Shifting, Tax avoidance
Level: Level 3

Topic: International taxation

AT – May 2021 – L3 – Q2c – Anti-Avoidance Measures

Evaluate the impact of income splitting as an anti-tax avoidance measure.

Question

As part of measures to fight back base erosion and profit shifting, Parliament of Ghana has legislated against profit splitting.

Required:
Evaluate the impact of income splitting as an anti-tax avoidance measure.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Anti-Tax Avoidance, Income Splitting, Profit Shifting
Level: Level 3

Topic: Anti-avoidance measures
Series: MAY 2021

ATAX – Nov 2021 – L3 – Q6 – International Taxation

Explains BEPS, its techniques, OECD initiatives, and implications for corporate tax strategies.

Question

Required:

As the company’s Tax Manager, you are to draft a paper addressing the General Manager’s concerns, covering the following:

Answer

Find Related Questions by Tags, levels, etc.

Tags: BEPS, Corporate Tax Strategy, OECD Initiatives, Profit Shifting, Tax avoidance
Level: Level 3

Topic: International taxation

AT – May 2021 – L3 – Q2c – Anti-Avoidance Measures

Evaluate the impact of income splitting as an anti-tax avoidance measure.

Question

As part of measures to fight back base erosion and profit shifting, Parliament of Ghana has legislated against profit splitting.

Required:
Evaluate the impact of income splitting as an anti-tax avoidance measure.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Anti-Tax Avoidance, Income Splitting, Profit Shifting
Level: Level 3

Topic: Anti-avoidance measures
Series: MAY 2021

Question Tag: Profit Shifting

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ATAX – Nov 2021 – L3 – Q6 – International Taxation

Explains BEPS, its techniques, OECD initiatives, and implications for corporate tax strategies.

AT – May 2021 – L3 – Q2c – Anti-Avoidance Measures

Evaluate the impact of income splitting as an anti-tax avoidance measure.

ATAX – Nov 2021 – L3 – Q6 – International Taxation

Explains BEPS, its techniques, OECD initiatives, and implications for corporate tax strategies.

AT – May 2021 – L3 – Q2c – Anti-Avoidance Measures

Evaluate the impact of income splitting as an anti-tax avoidance measure.

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Question Tag: Profit Shifting

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ATAX – Nov 2021 – L3 – Q6 – International Taxation

Explains BEPS, its techniques, OECD initiatives, and implications for corporate tax strategies.

You're reporting an error for "ATAX – Nov 2021 – L3 – Q6 – International Taxation"

AT – May 2021 – L3 – Q2c – Anti-Avoidance Measures

Evaluate the impact of income splitting as an anti-tax avoidance measure.

You're reporting an error for "AT – May 2021 – L3 – Q2c – Anti-Avoidance Measures"

ATAX – Nov 2021 – L3 – Q6 – International Taxation

Explains BEPS, its techniques, OECD initiatives, and implications for corporate tax strategies.

You're reporting an error for "ATAX – Nov 2021 – L3 – Q6 – International Taxation"

AT – May 2021 – L3 – Q2c – Anti-Avoidance Measures

Evaluate the impact of income splitting as an anti-tax avoidance measure.

You're reporting an error for "AT – May 2021 – L3 – Q2c – Anti-Avoidance Measures"

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