BEPS: “Assume a Can Opener”…

“Assume a can opener”, says the economist stuck on a desert island with his tuna can (The Money Game, Adam Smith)…

BEPS and CCCTB fans alike are nowadays rejoicing: “assume fair taxation”…

In the latest version of the Anti Tax Avoidance Package Q&A, the European Commission explains with absolute certainty:

“Corporate tax avoidance deprives public budgets of billions of euros a year [note omitted], creates a heavier tax burden for citizens and causes competitive distortions for businesses that pay their share. It also undermines the EU goals of growth, competitiveness and a stronger Single Market.”

What may indeed be deemed as “corporate tax avoidance” and “fair share [of tax paid]”?

Well, based on ATAP Q&A #19, “corporate tax avoidance” is defined as not paying the maximum amount of tax possible in a given country, which hence creates an “unfair” advantage for multinationals.

Domestic companies crumbling under taxes are allegedly paying their “fair share”.

According to the EU “tax loopholes” must hence be closed to ensure that every business will get nailed with maximum corporate tax rates.

Now “assume tax suffocation” for a brief moment…

Unemployment may rise (again)?

Retail prices may increase (even more)?

Compliance costs may go through the roof (we’re actually getting there)?

Tax litigation may explode (we are well on our way)?

Not to worry, says BEPS and CCCTB benefactors across the EU, “assume fair taxation”…

We do live in ever increasing BEPS-tacular times.

Robert Robillard, Ph.D., CPA, CGA, Adm.A., MBA, M.Sc. Econ., M.A.P.
Senior Partner, DRTP Consulting Inc.
514-742-8086; robertrobillard “at” drtp.ca
www.drtp.ca

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