The BEPS Assessment Tool: Background and Objectives 

As a consequence of growing globalization and the increase in cross-border activities of many companies, international base erosion and profit shifting (BEPS) has become a significant problem for governments all over the world, costing countries an estimated USD 100-240 billion in lost revenue annually. Due to its global nature, this problem requires coordinated international solutions. Countries have collaborated to address BEPS through a series of measures, primarily under the OECD/G20 BEPS project. However, research indicates that many countries, particularly developing countries, face substantial challenges in adopting and implementing BEPS recommendations.

Therefore, German Development Cooperation commissioned the International Bureau of Fiscal Documentation (IBFD) to develop the BEPS Assessment Tool (B.A.T.) The objective of the tool is to support countries with limited capacities in scrutinizing the capability of their tax system to effectively deal with BEPS issues considered relevant for developing countries’ domestic resource mobilization and sustainable development. Based on the assessment of strengths and weaknesses, the B.A.T. provides suggestions for potential priorities for specific measures and capacity-building activities to tackle international tax avoidance. 

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