Eternity Law International News Tax Conversion: Bers Plan

Tax Conversion: Bers Plan

Published:
March 11, 2020

Tax Transformation: The Bers Plan is a step towards a new future improvement in the operation of this system. As part of the summit in 2016, the G 20 published a clear work plan to formulate a new taxation policy.

The main goal is to find and eliminate gaps, shortcomings in tax legislation that promote or provide an opportunity for companies to avoid taxation, harming the country’s budget.

FORMING A Tax Conversion: Bers Plan

The Bers plan was developed over a period of 24-30 months with the participation of the countries with the most developed economies, as well as representatives of some developing countries.

Having worked out the basic principles for transforming taxation, it took a trial implementation of the system in practice.

Aiming at reforming the entire existing global tax system, 15 key points were formed to solve the tasks.

First of all, the issue of providing full reporting from the business segment on the income received in the territory where the activity is carried out and not only was decided.

This mainly applies to companies that own production facilities in several states, while paying taxes exclusively at the place of registration, withholding true profits.

COMPREHENSIVE INFORMATION EXCHANGE

The report developed at the summit helps each state to provide each other with a general picture of the income of each enterprise of a transnational group, which has a profit of about $ 750 million and above.

Now, these companies will have to mandatory show the economic planning of the revenue side for each operating branch, taking into account the place of registration (resident).

By making such an internal exchange between partner countries, tax authorities will receive complete information about the income of a particular enterprise and will be able to get lost or not recoverable previously profit.

Today, such an exchange system belongs to the category of high risk, as confidentiality is violated at the legislative level.

Here it is necessary to take into account the security of each business segment and develop a concept for storing personal data for a certain circle.

BEIJING FORUM 2016

On a form in Beijing in the spring of 2016, the issue of implementing the approved plan to transform the tax system of fees was discussed. Members of more than 50 countries took part in the discussion of the introduction of automatic information exchange.

As a result of the form, an agreement on the introduction of a new system was signed by most states. In the future, increased cooperation between countries to combat many offshore companies that do not pay taxes in full.

Specialists of Eternity Law International will provide you with professional services in full legal support, selection of documents and we will provide advice on this issue.

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