BEPS practices undermine the fairness and integrity of tax systems and are estimated to cost countries 100-240 billion in lost revenue annually. Addressing BEPS is vital because it ensures multinational corporations pay taxes where they conduct economic activities and generate value. This is essential for promoting fair competition and ensuring equitable revenue distribution. While BEPS affects all countries, developing economies are particularly vulnerable due to their significant reliance on corporate income tax, especially from multinational enterprises. Implementing effective anti-BEPS measures enables these countries to secure tax revenues vital for funding public services and infrastructure. By combating BEPS, countries can strengthen their financial stability, foster sustainable economic growth, reduce dependency on external aid, and enhance their overall development prospects.
The B.A.T. was developed based on an analysis of the specific challenges and needs that developing countries face concerning BEPS.
The timeline and logistics for conducting the assessment are agreed upon by the assessed authorities and the assessment team, taking into account available capacities and specific needs. Generally, the process takes 5-6 months from the initial kick-off meeting to the presentation of the final report.
The assessment requires the active involvement of the authorities being assessed. They will be asked to complete a comprehensive questionnaire and participate in in-person interviews. Additionally, country authorities or development partners should consider the costs associated with the assessors conducting the work, including expenses for the in-country visit.
The B.A.T. is available both in English and French
Yes. Based on insights gained from the assessment, the assessment team will present recommendations on measures to address BEPS, provide advice on priority-setting, and suggest specific actions to begin implementing these measures. Following this, discussions on the findings may take place, along with an open dialogue on any necessary assistance for implementing the priority plan.
Yes. To allow sufficient time for the implementation of the priority plan (or parts of it) to be effective and observable, it is recommended to conduct a B.A.T. follow-up assessment only after a 5-year period has elapsed since the conclusion of the previous B.A.T. assessment.
The B.A.T. also examines certain BEPS issues addressed by the OECD/G20 BEPS minimum standards. However, it is important to note that the B.A.T. assessment is neither a substitute for nor part of the official peer review process of the BEPS minimum standards. The peer review, which is the official assessment for members of the OECD/G20 Inclusive Framework on BEPS, goes into much more detail.
The publication of B.A.T. reports is voluntary and at the discretion of the tax authorities being assessed. If the assessed authorities to make the report public, it will be linked here. To date, all tax authorities have chosen to publish their assessment results.
Please get in touch with us using the form [link] provided. The teams from GIZ and IBFD are pleased to provide you with further information. I work for a development agency, and we are interested in applying the tool. What should we do? Please get in touch with us using the form [add link] provided to receive more information.
The B.A.T. was commissioned by the German Development Cooperation and developed by the International Bureau of Fiscal Documentation (IBFD) in partnership with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ). To prevent overlap with existing tools and to gather valuable input during the refinement and ongoing updates, an Advisory Group, including representatives from the IMF, OECD, TADAT and the UN, has been established. Furthermore, the Ministry of Foreign Affairs of the Netherland has supported the initiative by funding several assessments.
