BEPS plan as a key mechanism of intergovernmental tax cooperation – international progress and implementation status in Ukraine

Abstract

This article examines intergovernmental cooperation within the framework of the Base Erosion and Profit Shifting (BEPS) Action Plan, developed by the Organisation for Economic Co-operation and Development (OECD) at the initiative of the G20 countries. The relevance of implementing and studying this mechanism is driven by the issues of tax base erosion and profit shifting, carried out by individuals, legal entities, and large multinational corporations, leading to significant annual tax revenue losses, according to the OECD data. The study explores tools to combat this phenomenon. The analysis also focuses on Ukraine’s steps in implementing reforms aimed at joining global efforts to combat tax evasion. The research highlights the challenges facing Ukraine in aligning its tax system with international standards and describes legislative measures taken to counter BEPS. Special attention is given to the adoption of the Multilateral Instrument (MLI) and amendments to Ukraine’s Tax Legislation as key steps towards achieving tax transparency and preventing profit shifting. Furthermore, the study underscores the importance of further research in this field, emphasizing the expansion of international cooperation on tax matters. In the context of Ukraine’s implementation of tax reforms, there is a need for further scholarly exploration to assess policy effectiveness and develop future reforms. The author emphasizes that comprehensive research on the BEPS phenomenon and the implementation of relevant measures are crucial for Ukraine’s integration into the global tax administration system, which is also necessary in terms of Ukraine’s aspirations to join the EU. The author calls for continuous scholarly work to support reforms, promote transparency, and prevent tax evasion both domestically and internationally.