The OECD will publish the final report and recommendations of its so-called Base Erosion and Profits Sharing (BEPS) project today.

The project was launched in response to growing disquiet about the huge differentials between different countries’ tax treatment of multinational companies and the lack of transparency as to how their tax rules work.

The principal recommendations are expected to require multinationals with annual revenues of more than €750m to report their detailed operating and financial performance on country-by-country basis, which will result in much more comprehensive sharing of information with various tax authorities.

It is also expected only to validate lower corporation tax regimes in countries where multinationals have substantive operations and employment, rather than merely a 'brass plate.'

The Irish government, announced in last year’s budget and ahead of this final BEPS Report it would phase out the heavily-criticised 'Double Irish' tax mechanism which enabled some multinational companies significantly cut their tax bills by linking royalty payments recorded here with off-shore tax havens, particularly in the Carribbean.

The Sunday Times reported yesterday that the OECD will support Ireland's plans to create a 'knowledge box' which will charge a corporate tax rate of 6.5% on research and development activity in Ireland.