As expected, the G20 finance ministers endorsed the final package of measures for a comprehensive, coherent and coordinated reform of the international tax rules in Lima, Peru. Whilst international tax planning is not illegal, tax authorities around the globe are certainly not prepared to lose their fair share of tax collection. We expect the present Malaysian tax treaties to be amended via the Multilateral Instrument route sometime in 2018. To sum up, the practicality of international tax planning schemes, especially those without solid commercial reasoning would be in serious doubt. Doing nothing and hoping that BEPS measures would not be adopted in Malaysian tax treaties is not an option.

Source: The Star January 29, 2017 23:19 UTC