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.