№ 6/2021

Fìnansi Ukr. 2021 (6): 55–71https://doi.org/10.33763/finukr2021.06.055

TAX POLICY

IVANYTSKA Olga ¹, KOSHCHUK Tetiana ²

¹National Technical University of Ukraine “Igor Sikorsky Kyiv Polytechnic Institute”
OrcID ID : https://orcid.org/0000-0001-5505-8849
²SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0003-1013-4603

Methodological problems of BEPS analysis

The article is devoted to the issues of the methodology of the analysis of the base erosion and profit shifting (BEPS) for the development of managerial approaches to counteracting these destructive phenomena in Ukraine. Eleven types of data sources identified by the OECD that can be used for BEPS analysis are determined. It is shown that most sources of information for the purposes of analyzing the scale and effects of BEPS have significant limitations: their absence or limited representativeness in some countries; regulatory restrictions on access to data; lack of most financial data to reflect the activities of multinational corporations (MNCs). The indicators that testify to BEPS or dangerous phenomena of financial abuse, which are reflected in reporting, are analyzed, namely: 1) disconnect between financial and real economic activities; 2) high profit rates of low-taxed affiliates of top global MNCs; 3) high profit rates of MNC affiliates in lower-tax locations; 4) MNCs vs. "comparable" non-MNC effective tax rate differentials; 5) profit shifting through intangibles; 6) profit shifting through interest. It is proved that for Ukraine the calculation of a number of indicators can be complicated due to the delay in the publication of official data; lack of appropriate statistical reporting. In general, indicators show that they provide limited information about financial transactions and cannot reliably relate any changes and their reflection to BEPS. Therefore, the implementation of measures to combat BEPS should be based not only on the results of calculations of OECD indicators, but also on other empirical studies that provide reliable information on the development of income transfer between countries.

Keywords:tax base erosion and profit shifting (BEPS), indicators for assessing the scale of BEPS, sources of information on BEPS, OECD BEPS Action Plan, multinational corporations

JEL: Н21, Н26, Н87

IVANYTSKA O. . Methodological problems of BEPS analysis / O. . IVANYTSKA, T. . Koshchuk // Фінанси України. - 2021. - № 6. - C. 55-71.

Article original in Ukrainian (pp. 55 - 71)

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