OECD Standards, 2017 Tax Law Reduced Profit Shifting, Group Says

OECD standards and guidelines to reduce tax avoidance as well as the US tax law passed in 2017 have significantly reduced American companies’ ability shift to profits, according to a business group.

The guidance and law changes substantially curbed incentives for US-based multinational companies “to shift profits in a way that did not align with economic activity,” the United States Council for International Business said in a letter to Manal Corwin, director of the OECD’s Center for Tax Policy and Administration.

“In particular,” the group wrote, “the USCIB believes that the BEPS Actions and other tax policy changes have substantially ...