MDR forces intermediaries to disclose cross-border arrangements
All governments are faced with the increasing challenge of how to manage global taxpayers though their national tax systems. It is a fact that globalisation has resulted in a move away from country-specific operating models toward global business models, which may also be perceived to increase mass-marketed aggressive tax planning.
However, globalisation also provides an opportunity to develop new ways of cooperation between tax authorities, as well as new ways to exchange experiences and information on a global scale.
To secure global tax revenue, the OECD created a set of consensus-based international rules to address BEPS, taking into consideration that taxation is a tripartite environment, where intermediaries are one of the participants – the other two being the revenue bodies and taxpayers.