GFIA Comments on OECD Discussion Draft on "BEPS Action 7"Release Date: 01/09/2015 Staff Reference: Janice Hilchie
The Global Federation of Insurance Associations (GFIA) through its 38 member associations represents insurers that account for around 87% or more than $4 trillion in total insurance premiums worldwide. GFIA is pleased to provide comments on the OECD discussion draft on "BEPS Action 7: Preventing the Artificial Avoidance of PE Status". In general, we support the objectives of the OECD BEPS Action Plan to address weaknesses in the international tax environment.
Accordingly, we support the broad objectives of the discussion draft in combating aggressive tax planning aimed at preventing the artificial avoidance of Permanent Establishment (“PE”) status. However, it is critical that any measures adopted by the OECD are workable, well targeted, and do not result in unintended consequences that negatively impact the efficiency of commercial insurance operations and the availability and cost of insurance coverage for consumers.
Here are our key comments.