The report gives an update on the OECD’s current work on tax.
The OECD has published a report prepared for the leaders of the G20, for their meeting in Hamburg last week. The report details recent progress on the OECD’s ongoing international tax work, including updates on automatic exchange of information, progress on the BEPS project, tax policy initiatives, and tax in developing countries.
The report covers the following key themes:
All requested jurisdictions are now committed to the automatic exchange of information (AEOI), starting by September 2018 at the latest. In addition, 101 jurisdictions are now committed to automatically exchange all financial account information under the Common Reporting Standard.
The multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAC), which provides for compulsory exchange of information on request (EOIR) and optional AEOI, now has 111 signatories, with 14 more applying to sign. The convention creates more than 7,000 bilateral exchange relationships. Following Fast Track review, 17 jurisdictions have had their ratings upgraded, with only six now considered ‘partially compliant’ and one ‘non-compliant’.
With AEOI exchanges under the CRS to begin in September 2017, and the remaining jurisdictions to follow in September 2018, the OECD will now focus on assessing the countries’ ability to meet their tax transparency commitments in practice, and will report back to the G20 on this next year.
Inclusive framework on BEPS
The report gives an update on the number of signatories to the framework, as well as the status of the current BEPS peer reviews. Going forward, monitoring the implementation of BEPS will remain a priority for the OECD, along with dealing with technical challenges in relation to transfer pricing and the digital economy, with a report on the implications of digitalisation for taxation to be delivered in 2020 following an interim report in April 2018.
The OECD highlights some of its recent work on tax certainty, including the survey carried out earlier this year and reported to the G20 in March. The report makes a number of practical recommendations to support tax certainty, including improved tax policy design, improving tax dispute resolution, and more. A workshop will be held in Tanzania in October to discuss tax certainty in developing countries, and in 2018 the OECD and the IMF will report back to the G20 on their progress.
Tax and development
The OECD is undertaking a number of projects designed to help developing countries strengthen their tax systems, including bilateral BEPS programs, assistance with complex tax audits delivered by Tax Inspectors Without Borders, and the new Africa Academy on Tax and Financial Crime Investigation
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