Beps Action Plan and the Current Case of Turkey

Nalbant Efe G., Yetkin Ataer M.

in: The Political Economy of Public Finance, Mustaf Çelen,Özkan Zülküfoğlu,Elzbiata Robak, Editor, IJOPEC PUBLICATION, London, pp.165-215, 2017

  • Publication Type: Book Chapter / Chapter Research Book
  • Publication Date: 2017
  • City: London
  • Page Numbers: pp.165-215
  • Editors: Mustaf Çelen,Özkan Zülküfoğlu,Elzbiata Robak, Editor


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.