The OECD has announced that Jamaica became the 85th Jurisdiction to join the Inclusive Framework on BEPS.
In response to the call of the G20 Leaders, OECD members and G20 countries have developed an inclusive framework which allows interested countries and jurisdictions to work with OECD and G20 members on developing standards on BEPS related issues and reviewing and monitoring the implementation of the whole BEPS Package. To join the framework, interested countries and jurisdictions are required to commit to the comprehensive BEPS Package and its consistent implementation and to pay an annual BEPS Associate fee.
In this respect 4 minimum standards were agreed, in particular to tackle issues in cases where no action by some countries would have created negative spill overs (including adverse impacts of competitiveness) on other countries. The minimum standards encompass the following:
1. Model provisions to prevent treaty abuse, including through treaty shopping that will impede the use of conduit companies in countries and jurisdictions with favourable tax treaties to channel investments and obtain reduced rates of taxation;
2. Standardised Country-by-Country Reporting that will give tax administrations a global picture of where MNE profits, tax and economic activities are reported, and the ability to use this information to assess transfer pricing and other BEPS risks, so they can focus audit resources where they will be most effective;
3. A revitalised peer review process to address harmful tax practices, including patent boxes where they include harmful features, as well as a commitment to transparency through the mandatory spontaneous exchange of relevant information on taxpayer-specific rulings which, in the absence of information exchange, could give rise to BEPS concerns; and
4. An agreement to secure progress on dispute resolution, with the strong political commitment to the effective and timely resolution of disputes through the mutual agreement procedure (MAP).
More information regarding the Inclusive Framework on BEPS can be found in the background brief on the Inclusive Framework that the OECD published in March 2016. The background brief can be found here.
Click here to be forwarded to an overview of the Jurisdictions that have joined the Inclusive Framework on BEPS (status as per July 15, 2016) as published on the website of the OECD, which will open in a new window.
Copyright – internationaltaxplaza.info
Follow International Tax Plaza on Twitter (@IntTaxPlaza)
and
Follow International Tax Plaza on Facebook