Abstract
OECD/G20 BEPS project is a global step on setting the rules for non-harmful tax competition and for liquidating loopholes in international tax architecture, which today are generally based on OECD Model Tax Convention and destination-based VAT. So, tax competition will take another form and can lead to different outcomes in case of successful implementations of BEPS measures by the participating countries. Our main finding is that probable outcome of participating in BEPS project for Russia is losing in international tax competition game both in loss of tax revenues from MNCs and in attracting MNCs headquarters and their ultimate beneficiaries under Russian tax jurisdiction. Main arguments for this conclusion are (1) that international mismatches in VAT place of supplies rules for services lead to distortion of competition between foreign and national suppliers, (2) Russia has no practice of dispute resolutions between competent authorities and unclear transfer pricing methodology on intangibles; (3) international tax architecture currently in place is in favor of more developed states’ advantage in tax competition game and (4) Russian international tax rules strengthened with BEPS outcomes will be very complex, uncertain and can lead to double taxation and administrative burden.
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