On May 29, 2017 the OECD released a key document, which will form the basis of the peer review of the Action 6 minimum standard on preventing the granting of treaty benefits in inappropriate circumstances. According to the OECD the document has been approved by the Inclusive Framework on BEPS.
The Action 6 minimum standard is one of the four BEPS minimum standards as identified the Inclusive Framework. Each of the four BEPS minimum standards is subject to peer review in order to ensure timely and accurate implementation and thus safeguard the level playing field. All members of the Inclusive Framework on BEPS commit to implementing the minimum standards and participating in the peer reviews.
The note released on may 29, 2017 contains the key documents to be used for the peer review, which reflect the agreed approach: (1) the terms of reference and (2) the methodology for the conduct of peer reviews of the Action 6 minimum standard. The note additionally describes: the core output of the peer review and monitoring process, the process for the resolution of interpretation and application issues that might arise in the course of implementing the minimum standard on treaty-shopping; the process to be followed by jurisdictions that encounter difficulties in getting agreement from another jurisdiction member of the Inclusive Framework on BEPS in order to implement the Action 6 minimum standard; and the confidentiality of documents produced in the context of the review process.
Topics discussed in the note include a.o.:
· The process for the review of the implementation of the minimum standard on Action 6
o Terms of Reference
o Output of the peer review and monitoring process
o Methodology
o Interpretation and application issues that might arise in the course of implementing the minimum standard on treaty-shopping
o Jurisdictions that encounter difficulties in getting agreement from another jurisdiction member of the Inclusive Framework on BEPS in order to implement the minimum standard on Action 6
o Confidentiality
The note furthermore contains an Annex which contains a list that is to be prepared by each jurisdiction of the inclusive framework. The list contains questions regarding the DTAs jurisdictions have concluded (with other jurisdictions). Although the questions to be answered are the same, the list makes a distinction between DTAs concluded with another member of the inclusive framework and DTAs concluded with a non-member of the inclusive framework.
Click here to be forwarded to the key document, which will form the basis of the peer review of the Action 6 minimum standard on preventing the granting of treaty benefits in inappropriate circumstances as released by the OECD on May 29, 2017.
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