HM Treasury and HMRC officials are meeting with representatives of the PPP/PFI industry to discuss the implications of possible future restrictions to the UK’s favourable rules for interest deductions. Such restrictions are likely in light of the OECD BEPS project but they would have an especially detrimental effect for long-term infrastructure projects. Such projects are priced by reference to the current rules and none of the OECD’s proposals are likely to be welcome.
‘The BEPS men are coming – and they are coming for you.’ It sounds like the opening line of a really bad horror movie. Sadly the infrastructure sector may find itself living a really bad horror movie very soon.
We all know that the OECD in July 2013 published a 15 point action plan to tackle base erosion and profit shifting (BEPS)...
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")