Research Information System
in: The Political Economy of Public Finance, Mustaf Çelen,Özkan Zülküfoğlu,Elzbiata Robak, Editor, IJOPEC PUBLICATION, London, pp.165-215, 2017
The effective tax burden of multinational corporations has decreased significantly in recent
years. The main reason is that they exploited gaps and mismatches in tax rules, and shifted
their taxable income to low or no-tax locations by courtesy of old-fashioned international tax
rules and tax competition that came with globalization. OECD and G20 countries
understood the importance of tax revenue loss better after the global crisis and initiated a
fundamental reform in the international taxation system. The paper analyses progress made
in terms of the fifteen actions included in the OECD’s “Action Plan on Base Erosion and
Profit Shifting” by evaluating recommendations laid out in the following reports on each
action item and it reveals criticism about these recommendations. The paper also assesses
consistency of the current tax laws of Turkey with regard to recommendations about each
action item, and determines the relevant amendments made in tax legislation of Turkey after
approval of BEPS Package.