Regardless of whether the United States gets on board with the effort, U.S. companies will be affected, since the proposed requirements would result in significant new costs and compliance burdens. A transformation is coming; multinational companies need to be prepared for a new global tax environment.

The BEPS Project, which was requested by the G20, could lead to sweeping changes to U.S. corporate tax laws and related treaties. The process of eliminating base erosion and profit shifting addresses the issue of perceived lost revenue as a result of comprehensive corporate tax planning. The OECD’s July 2013 report to G20 finance ministers and central bank governors noted that concerns surround “international tax planning designed to shift profits in ways that erode the taxable base of developed and developing countries to locations where they are subject to a more favourable tax treatment.”

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