Editing Intellectual property (section)

===Use in corporate tax avoidance===
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|quote = Make no mistake: the headline [tax] rate is not what triggers tax evasion and aggressive tax planning.  That comes from schemes that facilitate profit shifting.
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|source=[[Pierre Moscovici]]<br />European Commissioner for Tax<br />''Financial Times'', 11 March 2018<ref>{{Cite news|url=https://www.ft.com/content/2b356956-17fc-11e8-9376-4a6390addb44 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/2b356956-17fc-11e8-9376-4a6390addb44 |archive-date=10 December 2022 |url-access=subscription |url-status=live|title=Multinationals pay lower taxes than a decade ago|work=Financial Times|date=11 March 2018|last=Toplensky|first=Rochelle}}</ref>
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Intellectual property has become a core tool in corporate tax planning and [[tax avoidance]].<ref name="fordam">{{cite web|title=Intellectual Property and Tax Avoidance in Ireland|url=http://www.fordhamiplj.org/2016/08/30/ip-tax-avoidance-ireland/|date=30 August 2016|website=fordhamiplj|publisher=Fordham Intellectual Property, Media & Entertainment Law Journal|url-status=dead|archive-url=https://web.archive.org/web/20190502112434/http://www.fordhamiplj.org/2016/08/30/ip-tax-avoidance-ireland/|archive-date=2 May 2019}}</ref><ref name="ucla">Intellectual property (IP) has become the leading tax-avoidance vehicle.{{cite web|title=Intellectual Property Law Solutions to Tax Avoidance|url=https://www.uclalawreview.org/pdf/62-1-1.pdf|year=2015|website=uclalawreview|publisher=UCLA Law Review|url-status=dead|archive-url=https://web.archive.org/web/20150316232500/http://www.uclalawreview.org/pdf/62-1-1.pdf|archive-date=16 March 2015}}</ref><ref name="lux">{{cite news|url=https://www.economist.com/business/2015/08/27/patently-problematic|title=Patently problematic|newspaper=The Economist|date=August 2015}}</ref> IP is a key component of the leading multinational tax avoidance [[base erosion and profit shifting]] (BEPS) tools,<ref name="tilburg">{{cite web|url=http://arno.uvt.nl/show.cgi?fid=143915|title=Intellectual Property Tax Planning in the light of Base Erosion and Profit Shifting|publisher=University of Tilburg|date=June 2017}}</ref><ref name="zew">{{cite web|url=http://ftp.zew.de/pub/zew-docs/dp/dp13078.pdf|title=Profit Shifting and "Aggressive" Tax Planning by Multinational Firms|publisher=Centre for European Economic Research (ZEW)|page=3|date=October 2013}}</ref> which the OECD estimates costs $100{{nbnd}}240&nbsp;billion in lost annual tax revenues.<ref name="BEPS Background"/> In 2017–2018, both the U.S. and the EU Commission simultaneously decided to depart from the [[Base erosion and profit shifting (OECD project)|OECD BEPS Project]] timetable, which was set up in 2013 to combat IP BEPS tax tools like the above,<ref name="BEPS Background">{{cite web|title=BEPS Project Background Brief|url=http://www.oecd.org/tax/beps/background-brief-inclusive-framework-for-beps-implementation.pdf|publisher=OECD|date=January 2017}}</ref> and launch their own anti-IP BEPS tax regimes:

* U.S. [[Tax Cuts and Jobs Act]], which has several anti-IP BEPS abuse tax regimes, including GILTI tax and the BEAT tax regimes.<ref>{{Cite web|title=A Hybrid Approach: The Treatment of Foreign Profits under the Tax Cuts and Jobs Act|url=https://taxfoundation.org/treatment-foreign-profits-tax-cuts-jobs-act/|publisher=Tax Foundation|date=3 May 2018}}</ref><ref>{{cite news|url=https://www.irishtimes.com/business/economy/trump-s-us-tax-reform-a-significant-challenge-for-ireland-1.3310866|title=Trump's US tax reform a significant challenge for Ireland|newspaper=The Irish Times|date=30 November 2017}}</ref><ref>{{cite news|url=https://www.irishtimes.com/business/donald-trump-singles-out-ireland-in-tax-speech-1.3310149?mode=sample&auth-failed=1&pw-origin=https%3A%2F%2Fwww.irishtimes.com%2Fbusiness%2Fdonald-trump-singles-out-ireland-in-tax-speech-1.3310149|title=Donald Trump singles out Ireland in tax speech|newspaper=The Irish Times|date=29 November 2017}}</ref>
* EU Commission 2018 Digital Services Tax, which is less advanced than the U.S. TCJA, but does seek to override IP BEPS tools via a quasi-VAT.<ref>{{cite news|url=https://www.irishtimes.com/business/economy/why-ireland-faces-a-fight-on-the-corporate-tax-front-1.3426080|title=Why Ireland faces a fight on the corporate tax front|newspaper=The Irish Times|date=14 March 2018}}</ref><ref>{{cite web|url=https://www.independent.ie/business/irish/eu-digital-levy-could-hit-tech-fdi-and-tax-revenue-here-36725944.html|title=EU digital levy could hit tech FDI and tax revenue here|work=Irish Independent|date=21 March 2018}}</ref><ref>{{cite web|url=http://www.thejournal.ie/eu-digital-tax-ireland-2-2-3918628-Mar2018/|title=What the EU's new taxes on the tech giants mean – and how they would hurt Ireland|publisher=thejournal.ie|date=24 March 2018}}</ref>

The departure of the U.S. and EU Commission from the OECD BEPS Project process, is attributed to frustrations with the rise in IP as a key BEPS tax tool, creating intangible assets, which are then turned into royalty payment BEPS schemes (double Irish), and/or [[capital allowance]] BEPS schemes (capital allowances for intangibles).  In contrast, the OECD has spent years developing and advocating intellectual property as a legal and a GAAP accounting concept.<ref name="un1">{{cite web|url=https://www.taxjustice.net/2017/09/11/new-un-tax-handbook-sets-lower-income-countries-oecd-beps/|title=New UN tax handbook: Lower-income countries vs OECD BEPS failure|publisher=Tax Justice Network|date=11 September 2017}}</ref>