Profit-Shifting Program Curbed Harmful Tax Practices, OECD Says

The OECD’s project to limit profit shifting has contributed to reduced tax avoidance and improved compliance over the past 10 years, the body said in a report Wednesday.

The project, known as BEPS, has led to the removal of preferential tax regimes and greater adoption of mutual agreement procedures, the OECD Secretary-General told the G20 Finance Ministers and Central Bank Governors in the report.

Mutual agreement procedures allow companies to negotiate and resolve double taxation issues with tax authorities.

More than 40% of the 332 reviewed preferential tax regimes were abolished or amended to remove harmful elements, the ...