5 Accounting Tips for BEPS Adoption

▤ Summary

BEPS stands for “Base Erosion and Profit Shifting.” It’s an initiative of the Organization for Economic Cooperation and Development’s (OECD), and its aim is to ensure a more equitable tax regimen for multinational entities (MNEs). Later, it was expanded to account for the broader concerns revolving around corporate taxation and efforts companies have made to shift profits to avoid tax liability. Other elements of change include IFRS 16/17 and parallel modifications to lease accounting under US GAAP, political uncertainty, a push toward higher tax rates and increased enforcement, and rising inflation. Error-prone processes inevitably lead to a risk of late material adjustments, which looks bad to internal stakeholders and is a red flag to auditors. These systems accurately collect and organize transfer pricing data, model various tax scenarios, identify gaps in targeted profitability, and enable you to make corrections before closing the books.

▦ Linked Companies

CALUMO

$5M to $10M