Economic Substance Regulations

Ms-ca06 Nov, 2020Finance

Despite the fact that most of the countries are having full-fledged tax authorities, tax profile and tax treaties, annual tax revenues are being leaked through loopholes, or call it “creative tax planning”. In order to combat harmful tax practices including unlawful avoidance or tax evasion and to comply with initiatives introduced by the Organization for Economic Co-operation and Development (OECD), Economic Substance Regulation was introduced.