Limiting the impact of excessive interest deductions on mining revenues – closes on Friday, 18 May 2018.

For many resource-rich developing countries, mineral resources present an unparalleled economic opportunity to increase government revenue. Tax base erosion and profit shifting (BEPS), combined with gaps in the capabilities of tax authorities in developing countries, threaten this prospect. One of the avenues for international profit shifting by multinational enterprises is the use of excessive interest deductions.

Building on BEPS Action 4, the practice note has been prepared by the OECD Centre for Tax Policy and Administration under a programme of co-operation with the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF), to help guide tax officials on how to strengthen their defences against BEPS. It is part of wider efforts to address some of the challenges developing countries are facing in raising revenue from their mining sectors. This work also complements action by the Platform for Collaboration on Tax and others to produce toolkits on top priority tax issues facing developing countries.

Comments on the draft are invited from interested stakeholders by 18 May 2018 and should be sent by email to [email protected]. A version in French will also be released in the coming weeks.

(Source: Call for submissions)


From the blog:

The Mongolian Millions: What Can We Learn From the Making of a Multinational Tax Avoidance Scandal?, by Maya Forstater

The Petroleum Resource Rent Tax 1987: The Process of Reform and Implications for Taxation of Petroleum Resources Today, by Emily Millane

Nationalisation, State Equity Participation and Resource Rent Taxation in the Extractive Industry, by Diane Kraal

Royalties or Resource Rent Taxes?, by John Freebairn

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