The Use of Financial Accounting Information in the OECD BEPS 2.0 Project: A Discussion of the Rules and Concerns
Forthcoming, National Tax Journal
53 Pages Posted: 9 Jan 2023 Last revised: 17 May 2023
Date Written: October 25, 2022
Abstract
This paper discusses the Organization for Economic Cooperation and Development’s Two- Pillar proposal for changing the global, international corporate tax regime. We focus on the use of financial accounting income as part of these tax rules. We provide a relatively high-level explanation of the rules, and we discuss some inconsistencies and complexities. We also discuss potential problems and unintended consequences for companies, financial statement users, tax authorities, financial statement auditors, and financial accounting standard setters as a result of using financial accounting income in the tax base.
Keywords: International taxation, financial accounting, Pillar 2, Pillar 1
JEL Classification: H25, M41
Suggested Citation: Suggested Citation