BusinessBusiness RecoveryOECD: Brexit will have ‘major consequences for UK’

OECD: Brexit will have ‘major consequences for UK’

The OECD's secretary-general José Ángel Gurría has given his verdict on what Brexit means for the UK and the EU

THE OECD’S secretary-general José Ángel Gurría has warned that Britain’s historic decision to leave the EU will have “major consequences” for the UK, the EU and the international community.

Gurría committed the OECD to helping the UK as it disentangles itself from the EU but stated that Brexit was not the OECD’s recommended course of action. The focus must now shift to “dealing with the outcome of this democratic process”, he said.

‘Openness, integration and diversity’

“The OECD will spare no efforts in supporting the government of the UK to make the transition as smooth as possible and advance the country’s economic and social agenda.

“We will also help the European Union and the international community best address the consequences of such a decision and chart the way forward.

“The OECD believes that openness, integration and diversity will make our economies and societies stronger and fairer. Thus, we will continue to support the European project while further reflecting on how to strengthen well-being and inclusiveness, both within our countries and globally,” continued Gurría.

What now?

One of the questions emerging from Brexit is the UK’s future involvement with the OECD and its Base Erosion and Profit Shifting (BEPS) project. The UK has been a big supporter of the initiative, but some tax experts believe that Britain’s exit from the European Union could change that dynamic.

Stephen Herring, head of taxation at the IoD, said that Brexit will not thwart the UK accountancy profession, and may present an opportunity to the UK when it comes to international tax projects.

“The same issues and opportunities that were there for the accountancy profession a month ago are still here now.

“If you look at the tax part of the profession, I think it means the UK can adopt a more distinctive approach to the BEPS project and can ‘pick and mix’ the best things out of BEPS. It may have more scope to flex our position on how BEPS will affect UK businesses.”

Related Articles

Advisers bullish despite Brexit concerns

Accounting Standards Advisers bullish despite Brexit concerns

1y Fraser Simpson, Reporter
Colin: Glass half full Brexit

Business Recovery Colin: Glass half full Brexit

1y Taking Stock
Friday Afternoon Live - Brexit and what it means for accountants

Accounting Firms Friday Afternoon Live - Brexit and what it means for accountants

1y Fraser Simpson, Reporter
BIS launches insolvency consultation

Business Recovery BIS launches insolvency consultation

2y Chris Warmoll, Writer
PwC questioned over BHS ‘going concern’ audit

Accounting Firms PwC questioned over BHS ‘going concern’ audit

2y Chris Warmoll, Writer
Brexit: What the papers say

Business Recovery Brexit: What the papers say

1y Fraser Simpson, Reporter
Brexit: Five questions accountants should be asking

Accounting Firms Brexit: Five questions accountants should be asking

1y Fraser Simpson, Reporter
UK votes to leave EU – accountancy profession reacts

Accounting Firms UK votes to leave EU – accountancy profession reacts

1y Fraser Simpson, Reporter