If closing the doors of the tax havens is impossible, you can try another way: make them unusable. And ‘the strategy developed by the OCSE to put an end to the tricks of the multinationals. This was revealed by Pascal Saint Amans, head of the tax department of the Parisian organization and Raf-faele Russo, project manager Beps: a new system of international tax rules that will prevent big companies to shift profits in countries with low or no taxation. The project received the imprimatur of the heads of state of the G20 and has been at the center of Ecofin in December. Expected to become operational in 2016. “At that point – says Saint Amans – tax havens will have no reason to exist. A company can put the seat in the Cayman Islands or in any place, but will still have to pay the taxes in the country where the economic activity and the creation of value really happen. “With the new rules every multinational company must submit a separate budget note for each country in which it operates, specifying production, turnover, number of employees. “We can not prohibit tax havens offer favorable conditions – says Saint Amans – but we can prevent companies to take ad-vantage of it: with Beps operational, will have to demonstrate that there have actually their busi-ness. This will put an end to the divorce between the location of economic activity and the resulting profits. “Russo explains: “If it turns out that a group has 4 thousand employees in Italy, 3 thousand in Germany, 5 thousand in France and 0 to Bermuda, but 80% of the group’s profits are declared in Bermuda, we will have to investigate and ask for explanations.” Even a task as that of Fiat, which has shifted the tax office in London would be useless with Beps active, would not make sense such a structure.
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