OECD: Progress And Facilitation On International Tax Transparency

The OECD informed that on the request of G20 countries, the Global Forum on Transparency and Exchange of Information for Tax Purposes is to provide a list of non-cooperative jurisdictions for the G20 Leaders Summit in Hamburg in July 2017.

Improvements in compliance with the EOIR standard

The list is determined based on three benchmarks in a Fast-Track review process. Jurisdictions need to meet at least two of the three benchmarks to avoid inclusion, namely:

  1. At least a “Largely Compliant” rating with respect to the Exchange of Information on Request standard;
  2. Commitment to implement the Automatic Exchange of Information standard, with first exchanges in 2018 (with respect to the year 2017) at the latest; and
  3. Participation in the Multilateral Convention on Mutual Administrative Assistance on Tax Matters or a sufficiently broad exchange network permitting both EOIR and AEOI.

An overriding criterion applies alongside the three benchmarks if a jurisdiction is determined by the Global Forum peer review process to be “non-compliant”, or is blocked from moving past Phase 1 of the EOI standard, or where it was previously blocked from moving past Phase 1 and has not yet received an overall rating under the Phase 2 process.

Most countries have managed to upgrade their rating into ‘largely compliant’ or ‘partially compliant’ through progressive improvements. The only exceptional case is Trinidad and Tobago which has a rating of ‘non-complaint’. An ongoing dialogue with Trinidad and Tobago is expected to improve the tax transparency standards.

Future steps in facilitating tax transparency

During the fast track process, which is the first round of EOIR peer reviews, many critical changes have been introduced by the reviewed jurisdictions. Second round of EOIR peer reviews is already ongoing, with the first outcomes to be released later this year.

Apart from participating in the multinational convention, the implementation of AEOI standard is to be supplemented with the deposit of the instruments of ratification, and complemented with the signature and activation of the MCAA CRS. The Global Forum is also peer reviewing the quality of the implementation of the AEOI standard, which has already commenced.

Source: OECD
 

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