The Organization for Economic Cooperation and Development has unveiled a plan to limit international tax evasion.Dubbed the Action Plan on Base Erosion and Profit Shifting, it consists of 15 points targeting domestic and international tax rules that allow companies to avoid paying taxes.
The plan depends on international cooperation to close gaps that allow income to 'disappear' for tax purposes by using multiple deductions for the same expense and 'treaty-shopping'. And stronger rules would allow countries to tax profits stashed in offshore subsidiaries.
