Almanac of law. Issue 17 (2026), pages 634–641.

DOI: 10.33663/2524-017X-2026-17-634-641

Reun A. M.
The role of government institutions and tax administrations in ensuring the implementation of international legal mechanisms to counter base erosion and profit shifting

The role of government institutions and tax administrations in ensuring the implementation of international legal mechanisms to counter base erosion and profit shifting (BEPS) is crucial for the development of an effective tax system. Government bodies function as strategic coordinators of state policy in the field of international taxation, developing and enacting legislative and regulatory acts that harmonize national legislation with international standards for preventing BEPS. They also establish organizational mechanisms for monitoring the activities of multinational corporations and define the state’s priorities in participating in global tax initiatives.

Tax administrations are responsible for the practical implementation of these norms, ensuring compliance with transfer pricing rules, monitoring the activities of controlled foreign companies, and analyzing financial flows of multinational groups. They participate in the international exchange of tax information, employ analytical and automated tools for risk detection, and ensure the efficient administration of taxes.

The effectiveness of implementing international legal mechanisms largely depends on the institutional capacity of the state, which includes the availability of qualified personnel, modern information systems, analytical tools, and the ability to promptly update legislation in response to global developments in the field of transnational taxation.

Integrating international standards for countering base erosion and profit shifting into national practice through the activities of government institutions and tax administrations enhances the transparency of financial flows, prevents aggressive tax planning schemes, and safeguards tax revenues. This creates a predictable and stable environment for the functioning of the national economy, in accordance with the principles of fair and neutral taxation.

Coordinated actions of government bodies and tax administrations also form the foundation for effective international cooperation, including participation in multilateral conventions, automatic exchange of information, and the implementation of country-by-country reporting for multinational groups. This allows the state not only to ensure the implementation of international legal standards but also to strengthen its financial security and enhance the efficiency of the global tax system.

Keywords: international law, government institutions, tax administrations, international legal mechanisms, base erosion, profit shifting, transfer pricing, controlled foreign companies, tax transparency, country-by-country reporting.

 References

1. Base erosion and profit shifting (BEPS). URL: https://www.oecd.org/en/topics/policy-issues/base-erosion-and-profit-shifting-beps.html
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4. Background Brief. Inclusive Framework on BEPS: OECD publishing. URL: https://www.oecd.org/
5. Country-by-country reporting for tax purposes. URL: https://www.oecd.org/en/topics/country-by-country-reporting-for-tax-purposes.html
6. OECD releases final report on CFC rules under BEPS Action 3. URL: https://taxnews.ey.com/news/2015-1939-oecd-releases-final-report-on-cfc-rules-under-beps-action-3
7. BEPS Actions 8-10: Aligning Transfer Pricing Outcomes with Value URL: https://regulatorik.ai/en/ramework/beps-actions-8-10
8. Multilateral convention to implement tax treaty related measures to prevent base erosion and profit shifting. URL: https://www.oecd.org

Дата першого надходження рукопису до видання: 10.03.2026
Дата прийнятого до друку рукопису після рецензування: 09.04.2026
Дата публікації: 30.04.2026