The latest webcast gave an update on the OECD’s tax work.
The OECD’s Centre for Tax Policy and Administration held the latest in its series of Tax Talks webcasts on 26 June 2017. Among other topics covered, the webcast discussed progress on the BEPS Inclusive Framework project, including the Multilateral Instrument (MLI), transfer pricing, and branch mismatch arrangements, as well as the work the OECD is doing on tax transparency and exchange of information. There was also a look ahead to the upcoming G20 summit in Hamburg, and more of the OECD’s future work.
General updates (not BEPS Action specific)
Vietnam has joined the BEPS Inclusive Framework, making it the 100th member, with around 95 percent of the world’s economy now committed to implementing BEPS.
An update report on the BEPS project, including next steps, will be presented at the upcoming G20 meeting in Hamburg (July 2017). This report will also include a report from the Global Forum on Transparency and Exchange of Information for Tax Purposes.
It is expected that going forward, an annual report on the progress of the BEPS project will be published.
BEPS Action 1: Digital Economy
The OECD is planning to hold a public consultation on the tax challenges of the digital economy in October/November, with reports to be published in the interim.
BEPS Action 2: hybrid mismatches
A final report on branch mismatches is expected to be released in July. The report will set out recommendations on domestic law changes to address the treatment of branch mismatches, to ensure consistency with both the OECD’s recommendations and the proposals of the EU’s Anti-Tax Avoidance Directive II.
BEPS Actions 8 – 10: Transfer Pricing
Two discussion drafts are currently active on transfer pricing matters:
Comments on both discussion drafts are due by 15 September with public consultations expected in November 2017.
The OECD has also stated that it expects the 2017 version of its transfer pricing guidelines to be available in early July.
BEPS Action 13: CbC Reporting
An update on implementation progress was provided:
BEPS Action 15: Multilateral Instrument
The OECD showed a preview of the MLI Matching Database which it is currently developing. It is hoped that the database will be online sometime in July.
Mauritius is expected to sign the MLI this week.
Peer reviews of BEPS minimum standards
Work has continued on the relevant actions, with reports expected on the following areas:
The peer review for BEPS Action 6 (Treaty Benefits) will start in the future.
Automatic Exchange of Information and the Common Reporting Standard (CRS)
The CRS asks jurisdictions to obtain information from their financial institutions and automatically exchange that information with other jurisdictions on an annual basis. The first exchanges among 50 countries are due to begin in September.
The webcast replay can be viewed here.
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