International Financial Law Prof Blog

Editor: William Byrnes
Texas A&M University
School of Law

Wednesday, July 11, 2018

Implementation and enforcement of the OECD Anti-Bribery Convention

Over the past 19 years, monitoring by the OECD Working Group on Bribery has established the Convention as the most rigorously enforced international anti-corruption instrument. New reports on implementation and enforcement have been issued for Germany and Norway.
» Germany
» Norway
» All country reports on implementation

July 11, 2018 in AML, OECD, OFAC | Permalink | Comments (0)

Wednesday, July 4, 2018

OECD releases BEPS discussion draft on the transfer pricing aspects of financial transactions

Public comments are invited on a discussion draft on financial transactions, which deals with follow-up work in relation to Actions 8-10 ("Assure that transfer pricing outcomes are in line with value creation") of the BEPS Action Plan.

The 2015 report on BEPS Actions 8-10 mandated follow-up work on the transfer pricing aspects of financial transactions. Under that mandate, the discussion draft, which does not yet represent a consensus position of the Committee on Fiscal Affairs or its subsidiary bodies, aims to clarify the application of the principles included in the 2017 edition of the OECD Transfer Pricing Guidelines, in particular, the accurate delineation analysis under Chapter I, to financial transactions. The work also addresses specific issues related to the pricing of financial transactions such as treasury function, intra-group loans, cash pooling, hedging, guarantees and captive insurance.

While comments are invited on any aspect of the discussion draft, the document also identifies a number of issues on which feedback is particularly sought.

Interested parties are invited to send their comments on this discussion draft, and to respond to the specific questions included in the boxes, by 7 September 2018 by e-mail to TransferPricing@oecd.org in Word format (in order to facilitate their distribution to government officials). Comments in excess of ten pages should attach an executive summary limited to two pages. Comments should be addressed to the Tax Treaties, Transfer Pricing and Financial Transactions Division, OECD/CTPA.

Please note that all comments received on this discussion draft will be made publicly available. Comments submitted in the name of a collective “grouping” or “coalition”, or by any person submitting comments on behalf of another person or group of persons, should identify all enterprises or individuals who are members of that collective group, or the person(s) on whose behalf the commentator(s) are acting.

For more information, please Tomas Balco, Head of the Transfer Pricing Unit or the Communications Office at the OECD Centre for Tax Policy and Administration.

July 4, 2018 in BEPS, OECD | Permalink | Comments (0)

Friday, June 29, 2018

OECD launches largest source of comparable tax revenue data

A new database providing detailed and comparable tax revenue information for 80 countries around the world – and which will expand to cover more than 90 countries by the end of 2018 – was unveiled today during the 5th plenary meeting of the Inclusive Framework on BEPS, held in Lima, Peru.


The Global Revenue Statistics Database provides the largest public source of comparable tax revenue data, which is produced in partnership with countries and regional organisations. The database provides reliable and accessible country-specific indicators on tax levels and structures, supports global efforts to raise domestic revenues for sustainable development, contributing directly to the Sustainable Development Goals and the Addis Ababa Action Agenda. It will strengthen the capacity of governments and tax policy-makers to develop and implement tax policy reforms that will raise domestic resources to fund the provision of vital public goods and services.

“With information covering 80 countries, the Global Revenue Statistics Database sets the global standard for robust and comparable tax revenue data” said Pascal Saint-Amans, Director of the OECD Centre for Tax Policy and Administration. “It is a vital foundation for tax policy reform and in supporting efforts to raise domestic resources to fund development”.

working paper, drawing on the new database, shows that in the 21st century countries have made strong progress towards mobilising domestic financing for development. Levels of tax revenues are now higher and more even across countries than at the turn of the century; and countries with the lowest revenues have experienced the largest increases in their tax-to-GDP ratios.


The Global Revenue Statistics Database integrates information from the four annual Revenue Statistics publications, which provide tailored insights on tax systems and revenue priorities in African, Asian, Latin American and Caribbean (LAC), and OECD countries. Based on the internationally-recognised OECD standard, the publications are produced in partnership with regional partners, with the financial support of the European Union, and in close collaboration with participating countries.


Key findings from the working paper (drawing from the new database):

  • Across the 80 countries, tax-to-GDP ratios range from 10.8% to 45.9%.
    • Half of the countries have a tax-to-GDP ratio ranging between 18.2% and 33.2% of GDP.
    • The median tax-to-GDP ratio is 26.2%.
  • Since 2000, three-quarters of the countries in the database have increased their tax to GDP ratios:
    • Half of the countries have increased their tax-to-GDP ratios by between 0 and 5% of GDP;
    • A further quarter have increased their tax-to-GDP ratio by more than 5% of GDP. Most of these countries are from Africa and LAC.
    • The remaining quarter of countries, where tax-to-GDP ratios fell, are predominantly OECD countries.
  • In Africa (16) and LAC, taxes on goods and services (especially VAT) and corporate income taxes are particularly important as a share of revenues. Social security contributions and personal income taxes form the highest shares of tax revenue in most OECD countries, with VAT playing a smaller role. 
  • Since 2000, VAT has become increasingly significant in more than three-quarters of the countries, in many cases, with corresponding falls in the share of income taxation or taxes on other goods and services. The exceptions are the quarter of countries with the highest increases in their tax to GDP ratios, which recorded strong increases in most or all major tax types.
  • Per capita income, and different types of tax structures, are linked to the level of taxation.
    • There is a positive correlation between tax-to-GDP levels, per-capita income levels and the share of personal income tax and social security contributions.
    • There is a negative correlation between tax-to-GDP levels and the shares of corporate taxes and taxes on goods and services.

To access the database, key findings, technical note, and working paper, visit http://oe.cd/global-rev-stats-database

June 29, 2018 in OECD | Permalink | Comments (0)

Monday, June 25, 2018

OECD releases new guidance on the application of the approach to hard-to-value intangibles and the transactional profit split method under BEPS Actions 8-10

the OECD released two reports containing Guidance for Tax Administrations on the Application of the Approach to Hard-to-Value Intangibles, under BEPS Action 8; and Revised Guidance on the Application of the Transactional Profit Split Method, under BEPS Action 10.

In October 2015, as part of the final BEPS package, the OECD/G20 published the report on Aligning Transfer Pricing Outcomes with Value Creation (OECD, 2015), under BEPS Actions 8-10. The Report contained revised guidance on key areas, such as transfer pricing issues relating to transactions involving intangibles; contractual arrangements, including the contractual allocation of risks and corresponding profits, which are not supported by the activities actually carried out; the level of return to funding provided by a capital-rich MNE group member, where that return does not correspond to the level of activity undertaken by the funding company; and other high-risk areas. The Report also mandated follow-up work to develop:

The new guidance for tax administration on the application of the approach to hard-to-value intangibles (HTVI) is aimed at reaching a common understanding and practice among tax administrations on how to apply adjustments resulting from the application of this approach. This guidance should improve consistency and reduce the risk of economic double taxation by providing the principles that should underlie the application of the HTVI approach. The guidance also includes a number of examples have been included to clarify the application of the HTVI approach in different scenarios and addresses the interaction between the HTVI approach and the access to the mutual agreement procedure under the applicable tax treaty. This guidance has been formally incorporated into the Transfer Pricing Guidelines as an annex to Chapter VI.

This report contains revised guidance on the profit split method, developed as part of Action 10 of the BEPS Action Plan. This guidance has been formally incorporated into the Transfer Pricing Guidelines, replacing the previous text on the transactional profit split method in Chapter II. The revised guidance retains the basic premise that the profit split method should be applied where it is found to be the most appropriate method to the case at hand, but it significantly expands the guidance available to help determine when that may be the case. It also contains more guidance on how to apply the method, as well as numerous examples.


Addressing base erosion and profit shifting continues to be a key priority of governments around the globe. In 2013, OECD and G20 countries, working together on an equal footing, adopted a 15-point Action Plan to address BEPS. In 2015, the BEPS package of measures was endorsed by G20 Leaders and the OECD. In order to ensure the effective and consistent implementation of the BEPS measures, the Inclusive Framework on BEPS was established in 2016 and now has 116 members. It brings together all interested countries and jurisdictions on an equal footing at the OECD Committee on Fiscal Affairs.

June 25, 2018 in BEPS, OECD | Permalink | Comments (0)

Wednesday, April 25, 2018

OECD and IGF invite comments on a draft practice note that will help developing countries address profit shifting from their mining sectors via excessive interest deductions

 For many resource-rich developing countries, mineral resources present an unparalleled economic opportunity to increase government revenue. Tax base erosion and profit shifting (BEPS), combined with gaps in the capabilities of tax authorities in developing countries, threaten this prospect. One of the avenues for international profit shifting by multinational enterprises is the use of excessive interest deductions.   Download Limiting-excessive-interest-deductions-discussion-draft

Building on BEPS Action 4, this practice note has been prepared by the OECD Centre for Tax Policy and Administration under a programme of co-operation with the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF), to help guide tax officials on how to strengthen their defences against BEPS. It is part of wider efforts to address some of the challenges developing countries are facing in raising revenue from their mining sectors. This work also complements action by the Platform for Collaboration on Tax and others to produce toolkits on top priority tax issues facing developing countries.

Comments on the draft are invited from interested stakeholders by 18 May 2018 and should be sent by email to CTP.BEPS@oecd.org. A version in French will also be released in the coming weeks.

April 25, 2018 in BEPS, OECD | Permalink | Comments (0)

Tuesday, April 24, 2018

OECD addresses the misuse of residence/citizenship by investment schemes

Revelations from the "Daphne Project" on the Maltese residence and citizenship by investment schemes underline the crucial importance of the OECD's work to ensure that the integrity of the OECD/G20 Common Reporting Standard (CRS) is preserved and that any circumvention is detected and addressed.   Download Consultation-document-preventing-abuse-of-residence-by-investment-schemes

Over the last months, the OECD has been taking a set of actions to ensure that all taxpayers maintaining financial assets abroad are effectively reported under the CRS, including by:

  • issuing new model disclosure rules that require lawyers, accountants, financial advisors, banks and other service providers to inform tax authorities of any schemes they put in place for their clients to avoid reporting under the CRS. The adoption of such model mandatory disclosure rules will have a deterrent effect on the promotion of CBI/RBI schemes for circumventing the CRS and provide tax authorities with intelligence on the misuse of such schemes as CRS avoidance arrangements. The EU Member States have already agreed  to implement these rules as part of a wider directive on mandatory disclosures;
  • reaching out to individual jurisdictions, including Malta, to make them aware of the risk of abuse of their CBI/RBI schemes and offer assistance in adopting mitigating measures; and
  • establishing a list of high risk schemes in order to further raise awareness amongst stakeholders of the potential of such schemes to undermine the CRS due diligence and reporting requirements.

Download Public-input-received-misuse-of-residence-by-investment-schemes-to-circumvent-the-common-reporting-standard

In addition, on 19 February 2018, the OECD issued a consultation document, outlining potential situations where the misuse of CBI/RBI schemes poses a high risk to accurate CRS reporting and seeking public input both to obtain evidence on the misuse of CBI/RBI schemes and on effective ways for preventing such abuse.

The substantial amount of input received in response to the consultation further underlines the importance of the OECD's actions in this field. It also contains a wide range of proposals for further addressing the misuse of RBI/CBI schemes, including: 1) comprehensive due diligence checks to be carried out as part of the RBI/CBI application process, 2) the spontaneous exchange of information about individuals that have obtained residence/citizenship through such a CBI/RBI scheme with their original jurisdiction(s) of tax residence; and 3) strengthened CRS due diligence procedures on financial institutions with respect to high risk accounts.

The OECD will take the next step in addressing the issue, when experts from OECD and G20 countries meet in Paris this May to further elaborate actions to be taken to effectively address the misuse of CBI/RBI schemes.

April 24, 2018 in OECD, Tax Compliance | Permalink | Comments (0)

OECD Seeks to Hire Tax Capacity Building Adviser, Forum on Tax Administration International Co-operation and Tax Administration Division (CTPA/ICA) (Job Number: 12032)

App Deadline 13-05-2018, 9:59:00 PM 

The OECD is a global economic forum working with 35 member countries and more than 100 emerging and developing economies to make better policies for better lives. Our mission is to promote policies that will improve the economic and social well-being of people around the world. The Organisation provides a unique forum in which governments work together to share experiences on what drives economic, social and environmental change, seeking solutions to common problems. 

The OECD has earned a leading role in international tax issues. The Centre for Tax Policy and Administration (CTPA) is the focal point for the OECD’s work on all taxation issues, both international and domestic, and it works to advance the Strategic Orientations of the Secretary General, ensuring impact of the OECD tax work in the international governance architecture, in co-ordination with the OECD Sherpa team. The CTPA collaborates with other parts of the Organisation on issues such as tax and climate change, tax and growth, and the impact of taxation on labour markets and several other multidisciplinary projects. The CTPA also provides the analytical support to the OECD’s Committee on Fiscal Affairs and Inclusive Framework on BEPS, which consists of senior tax policy and administration officials from OECD countries, Associate and Partner countries, Inclusive Framework members, and other international and regional tax organisations. Through its work, the CTPA enhances the OECD’s global role in standard-setting, building knowledge, communicating with the world and interacting with governments from around the world to inform and influence policy making in the tax area. 

The CTPA is looking for an Adviser to support the work of the Secretariat for the Forum on Tax Administration (FTA) on the opportunities and risks for tax administrations of new technologies and in particular to lead a project to set a strategic framework for future work on the use, implementation and management of technology to help build tax capacity in developing countries.  There is significant global demand for guidance in this area, especially in the context of the BEPS Actions, many of which depend on effective use of technology by tax administrations.  The successful candidate will report to the Head of the FTA Secretariat within the International Co-operation and Tax Administration Division (CTPA/ICA) and will work closely with the Global Relations and Development Division (CTPA/GRD). 

The FTA is a unique body, bringing together the leaders of tax administrations from 50 advanced and emerging countries.  The FTA enables member administrations to work together on projects and through enduring networks to enhance domestic and international tax administration, to deepen co-operation between tax administrations and share and develop knowledge on common challenges.  FTA members, bilaterally and through the FTA’s Capacity Building Network support wider OECD work on tax capacity building for developing countries. 

NB This position will require travel to all regions of the world.
 The vacancy is open to nationals of countries and jurisdictions participating in the Inclusive Framework on BEPS (see link for full list of members)
 
Main Responsibilities 
  1. Project management and Drafting 
  • Draft a report setting a strategic framework for tax technology tools for developing countries and other outputs relevant to opportunities and risks of new technologies. This will require working closely with a wide range of stakeholders, including developing country experts, technical experts, the FTA’s Capacity Building Network, the Platform for Collaboration on Tax, regional tax organisations, academics and other relevant stakeholders.
 Ensure that reports are well-scoped with clear milestones and delivery targets and that there is an inclusive stakeholder engagement plan in place (in particular, leveraging the expertise and resources of other organisations).
 
  • Ensure that reports are well-written, focussed on accurate elements and take account of other existing work and developments.  
  • Ensure that reports are widely disseminated and that recommendations are taken forward as well as putting a framework in place for monitoring and evaluation.    
2. Liaison and representation
 
  • Establish and maintain close contact with national authorities, academics and research institutes, donor agencies, the private sector and other international organisations with expertise and/or interest in working with developing countries’ tax administrations on the use of digital technologies.  
  • Represent the OECD in internal and external fora. 

Ideal Candidate Profile

 Academic Background 
  • An advanced university degree or equivalent in taxation, law, economics, public finance, accounting or business administration. , with a focus on economics, technology and administrative applications, development assistance or other areas of public policy. 
Professional Background
  • At least three, preferably five years’ relevant experience in a national administration, international organisation, research institution, university or the private sector.
  •  Very good knowledge of the introduction and use of digital technologies and ideally some experience of capacity building in developing countries. 
  • Proven analytical ability.
 
Languages 
  • Fluency in one of the two OECD official languages (English and French) and knowledge of the other, with a commitment to reach a good working level. 
  • Knowledge of other languages would be an asset. 

Core Competencies

For this role, the following competencies would be particularly important: Achievement focus, Drafting skills, Managing resources, Teamwork, Strategic Thinking and Strategic Networking.

 
Please refer to the OECD Core Competencies and the level 3 indicators.
 
Contract Duration 

Two year fixed-term appointment, with the possibility of renewal. 

What the OECD offers 

  • Depending on level of experience, monthly salary starts at either 5,800 EUR or 7100 EUR, plus allowances based on eligibility, exempt of French income tax.

April 24, 2018 in OECD | Permalink | Comments (0)

Wednesday, April 4, 2018

Trade in Counterfeit Goods and Free Trade Zones

Cover for Trade in Counterfeit Goods and Free Trade Zones
This study examines the potential for the misuse of Free Trade Zones (FTZs) for trade in counterfeit and pirated goods. It presents the evolution of the FTZs and the international legal framework in which they operate, the reasons for establishing such zones and the benefits they offer businesses, and, finally, the role these zones play in fuelling trade in counterfeit and pirated goods. It also analyses the links between the FTZs and trade in counterfeit products and provides data on these links.

Download Free Trade Zones and Counterfeit Goods

 

 

 
 

April 4, 2018 in OECD | Permalink | Comments (0)

Monday, April 2, 2018

Tax Challenges Arising from Digitalization – Interim Report 2018

This interim report of the OECD/G20 Inclusive Framework on BEPS is a follow-up to the work delivered in 2015 under Action 1 of the BEPS Project on addressing the tax challenges of the digital economy. It sets out the Inclusive Framework’s agreed direction of work on digitalization and the international tax rules through to 2020. It describes how digitalization is also affecting other areas of the tax system, providing tax authorities with new tools that are translating into improvements in taxpayer services, improving the efficiency of tax collection and detecting tax evasion.   Download Digitalization tax interim report 2018

April 2, 2018 in BEPS, OECD | Permalink | Comments (0)

Friday, March 16, 2018

Tax Challenges Arising from Digitization – Interim Report 2018 of 110+ Countries

This interim report of the OECD/G20 Inclusive Framework on BEPS is a follow-up to the work delivered in 2015 under Action 1 of the BEPS Project on addressing the tax challenges of the digital economy. It sets out the Inclusive Framework’s agreed direction of work on digitalisation and the international tax rules through to 2020. It describes how digitalisation is also affecting other areas of the tax system, providing tax authorities with new tools that are translating into improvements in taxpayer services, improving the efficiency of tax collection and detecting tax evasion.

More than 110 countries and jurisdictions have agreed to review two key concepts of the international tax system, responding to a mandate from the G20 Finance Ministers to work on the implications of digitalisation for taxation.

The members of the OECD/G20 Inclusive Framework on BEPS will work towards a consensus-based solution by 2020, as set out in their Interim Report on the Tax Challenges Arising from Digitalisation released today. The Interim Report will be presented by OECD Secretary-General Angel Gurría to the G20 Finance Ministers at their meeting on 19-20 March in Buenos Aires, Argentina.

Building on the 2015 BEPS Action 1 Report, the Interim Report includes an in-depth analysis of the changes to business models and value creation arising from digitalisation, and identifies characteristics that are frequently observed in certain highly digitalised business models. Describing the potential implications for the international tax rules, the Interim Report identifies the positions that different countries hold, which drive their approach to possible solutions. These approaches range from those countries that consider no action is needed, to those that consider there is a need for action that would take into account user contributions, through to others who consider that any changes should apply to the economy more broadly. The Interim Report lays the ground to move forward at the OECD towards a long-term multilateral solution in the next phase of work.

“The international community has taken an important step today towards resolving the tax challenges posed by the digitalisation of the economy,” said Mr Gurría. “We have underlined the complexity of the issues, and highlighted the importance of reaching international agreement, both for our economies and the future of the rules-based system. The OECD stands ready to accompany countries as they seek to build a common understanding of the issues related to the digital economy and taxation, as well as the long-term solutions.”

Under the OECD/G20 Base Erosion and Profit Shifting (BEPS) Project, a number of important new standards were delivered aimed at tackling double non-taxation. Country-level implementation of the wide-ranging BEPS package is already having an impact, with evidence emerging that some multinationals have already changed their tax arrangements to better align with their business operations. The measures are already delivering increased revenues for governments - for example, over 3 billion euros in the European Union alone as a result of the implementation of the new International VAT/GST Guidelines. Despite this success in tackling BEPS, the Interim Report underlines that many countries believe challenges to the international tax system still remain.

Inclusive Framework members recognise that they share a common interest in maintaining a single, relevant set of international tax rules. As part of the next phase of their work, they have agreed to undertake a coherent and concurrent review of the “nexus” and “profit allocation” rules - fundamental concepts relating to the allocation of taxing rights between jurisdictions and the determination of the relevant share of the multinational enterprise’s profits that will be subject to taxation in a given jurisdiction. In exploring potential changes, members would consider the impacts of digitalisation on the economy, relating to the principles of aligning profits with underlying economic activities and value creation.

While agreeing to work towards a long-term solution by 2020, some countries believe that there is a strong imperative to act quickly and are in favour of the introduction of interim measures, while other countries are opposed to them and consider that such measures will give rise to risks and adverse consequences. Those countries in favour have identified a number of considerations that they believe need to be taken into account to limit the possible adverse side-effects.

The Interim Report also looks at how digitalisation is affecting other areas of the tax system, including the opportunities that new technologies offer for enhancing taxpayer services and improving compliance, as well as the tax risks, including those relating to the block chain technology that underlies crypto-currencies.

March 16, 2018 in BEPS, OECD | Permalink | Comments (0)

Sunday, March 4, 2018

Tax Inspectors Without Borders is seeking expert tax auditors for audit capacity around the world

Tax Inspectors Without Borders (TIWB) is looking for qualified tax auditors who are fluent in Ukrainian and/or Russian to participate in upcoming audit assistance programmes. If you have five or more years of international tax audit and transfer pricing experience in a tax administration, please contact the TIWB Secretariat to find out more.

Experts

  • Do you have at least five years' experience in an audit or audit-related role in a national tax administration?

  • Have you retired within the last five years or are you currently serving in a tax administration?

  • Looking for an opportunity to travel and share your knowledge? 

Experts participating in a TIWB Programme will often be deployed for one to two week-long missions over a period of one to six months. The Host Administration may or may not provide remuneration for the Expert, but in all cases daily expenses are covered in the Programme Costs. TIWB Experts have experience in areas such as risk review/assessment, case selection, VAT, transfer pricing, thin capitalisation, computer forensic audits, multi-national enterprises/large businesses audits, etc. 

 

 

 

Role of a TIWB Expert

The role of the TIWB Expert is to provide hands-on assistance in the daily audit and audit-related activities of the Host Administration, working on actual audit cases. TIWB Experts work at the local tax office of the Host Administration with the local tax officials. The Host Administration manages the Expert's day-to-day role. The Expert does not take the place of local tax audit staff or carry out audit work that would not otherwise involve local audit personnel. 

 

March 4, 2018 in OECD | Permalink | Comments (0)

Saturday, March 3, 2018

OECD and Brazil launch project to examine differences in cross-border tax rules

The OECD and Brazil launched a joint project to examine the similarities and gaps between the Brazilian and OECD approaches to valuing cross-border transactions between associated firms for tax purposes. The project will also assess the potential for Brazil to move closer to the OECD’s transfer pricing rules, which are a critical benchmark for OECD member countries and followed by countries around the world. 

The 15-month work programme will analyse the legal and administrative framework behind the Brazilian transfer pricing system, as well as its implementation.  It will examine strengths and weaknesses in the Brazilian approach while exploring options for greater alignment with the OECD’s internationally accepted standard, the OECD Transfer Pricing Guidelines, which would be an important element of any future process of accession to the Organisation. 

“Brazil is a key partner of the OECD, so we are glad to take this step together toward bridging the gaps in transfer pricing,” said OECD Secretary-General Angel Gurría, launching the project with Finance Minister Henrique Meirelles, Federal Revenue Secretary Jorge Antonio Rachid and National Confederation of Industry (CNI) President Robson Braga de Andrade. 

“Effective transfer pricing rules arecritical for avoiding double taxation and ensuring that taxable profits are not artificially shifted away. The project we are launching today will enable us to better understand the options for improving the application of transfer pricing rules in Brazil, and achieving greater convergence. This will help enhance the investment climate in Brazil by reducing the risk of double taxation,” Mr Gurría said. (Read the speech in full) 

The OECD has long been at the forefront of efforts to develop common approaches to transfer pricing. Building on the 1979 report, Transfer Pricing and Multinational Enterprises, the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations – produced in 1995 and updated in 2017 to incorporate the results of OECD work to counter Base Erosion and Profit Shifting (BEPS) – are followed by countries worldwide. They reflect a common understanding of how to apply the arm’s length principle, which is embedded in both the OECD Model Tax Convention and the UN Model Tax Convention. 

As a G20 member, Brazil has worked closely with the OECD on international tax policy issues for many years, and is a member of the OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes and the Inclusive Framework on BEPS.

March 3, 2018 in OECD | Permalink | Comments (0)

Saturday, February 24, 2018

OECD Job: Adviser for Tax Treaties, Transfer Pricing and Financial Transactions (CTPA/TTP)(Job Number: 11917)

Application Closing Date: March 6, 2018

The OECD is a global economic forum working with 35 member countries and more than 100 emerging and developing economies to make better policies for better lives. Our mission is to promote policies that will improve the economic and social well-being of people around the world. The Organisation provides a unique forum in which governments work together to share experiences on what drives economic, social and environmental change, seeking solutions to common problems.  

The OECD has earned a leading role in international tax issues. The Centre for Tax Policy and Administration (CTPA) is the focal point for the OECD’s work on all taxation issues, both international and domestic, and it works to advance the Strategic Orientations of the Secretary General, ensuring impact of the OECD tax work in the international governance architecture, in co-ordination with the OECD Sherpa team. The CTPA collaborates with other parts of the Organisation on issues such as tax and climate change, tax and growth, and the impact of taxation on labour markets and several other multidisciplinary projects. The CTPA also provides the analytical support to the OECD’s Committee on Fiscal Affairs, which consists of senior tax policy and administration officials from OECD countries, Associate and Partner countries and other international and regional tax organisations. Through its work, the CTPA enhances the OECD’s global role in standard-setting, building knowledge, communicating with the world and interacting with governments from around the world to inform and influence policy making in the tax area.

Tax treaty issues form a major part of the G20/OECD Project on Base Erosion and Profit Shifting (BEPS), which reflects the fact that tax treaty issues are some of the top challenges in the international tax field. The CTPA is looking for an Adviser to provide technical expertise and guidance in implementing the OECD standards developped in the BEPS project, both from a policy and tax administration perspective, and within OECD member and non-member economies. A key component of the next phase of the BEPS work is ensuring effective and consistent implementation of the BEPS tax treaty outcomes as well as completing the remaining technical work. This work will be carried out in an inclusive framework that will enable interested developing countries and jurisdictions to participate on an equal footing. 

The successful candidate will work under the supervision of the Head of the Tax Treaty Unit in the Tax Treaty, Transfer Pricing and Financial Transactions Division (TTP) of the CTPA.

Main Responsibilities 

Co-ordination, liaison and representation 

  • Develop and execute the Tax Treaty Unit’s outreach programme and conduct missions to OECD and non-OECD economies in the area of tax treaties (including theMultilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS).
  • Liaise, where necessary, with other relevant CTPA Divisions to ensure co-ordination among the different areas of work.
  • Contribute to the organisation and preparation for the meetings of Working Party 1 on Tax Conventions and Related Questions where required.
  • Present, discuss and explain the OECD’s work in the area of tax treaties at meetings, seminars and conferences.

Monitoring, Analysis, Drafting

  • Contribute to the development of the policy work of the Tax Treaty Unit, respond quickly to new priorities and emerging challenges, and present creative proposals for improving the content of the Tax Treaty Unit’s programme of work.
  • Draft analytical reports for discussion and approval by Working Party 1.
  • Participate in discussions on those reports at relevant meetings with a view to achieve consensus.
  • Assist in delivering the work programme of Working Party 1 and related bodies in a timely manner.
  • Provide guidance and technical support on the tax treaty aspects of the Tax and Development Programme.

Other

  • Contribute to the wider development of the CTP’s work on taxation.

Ideal Candidate profile

Academic Background

  • An advanced university degree or equivalent in taxation, economics, business, accounting or law.

Professional Background

  • At least three, preferably five years’ experience in the field of tax treaties gained in a national government, the private sector or in an international organisation.
  • Experience in conceptualising and analysing complex issues and in providing strategic leadership in the tax treaty and tax planning areas.
  • Proven experience in negotiating tax treaties.
  • Experience negotiating or implementing the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS would be an asset.
  • Experience conducting missions for non-OECD economies in the area of tax treaties would be an asset.

Languages

  • Fluency in one of the two OECD official languages (English and French) and knowledge of the other, with a commitment to reach a good working level.
  • Knowledge of Spanish would be an asset.

Core Competencies

  • For this role, the following competencies would be particularly important:Achievement focus, Analytical thinking, Drafting skills, Flexible thinking, Teamwork, Diplomatic sensitivity, Negotiating, Developing talent, Strategic thinking.
  • Please refer to the level 3 indicators of the OECD Core Competencies.

 Contract Duration

  • Two years fixed term appointment, with the possibility of renewal.
  • Ideal starting date: August 2018.

What the OECD offers

  • Depending on level of experience, monthly salary starts at either 5,800 EUR or 7;100 EUR, plus allowances based on eligibility, exempt of French income tax.

February 24, 2018 in OECD | Permalink | Comments (0)

Sunday, February 4, 2018

BEPS Action 13: Jurisdictions implement final regulations for first filings of CbC Reports, with over 1400 bilateral relationships now in place for the automatic exchange of CbC information

a further important step was taken to implement Country-by-Country (CbC) Reporting in accordance with the BEPS Action 13 minimum standard, through activations of automatic exchange relationships under the Multilateral Competent Authority Agreement on the Exchange of CbC Reports ("the CbC MCAA").

The automatic exchange of Country-by-Country Reports which is set to start in June 2018 will give tax administrations around the world access to key information on the annual income and profits, as well as the capital, employees and activities of Multinational Enterprise Groups that are active within their jurisdictions. With more than six months before the first exchange deadline, there are now over 1400 automatic exchange relationships in place among jurisdictions committed to exchanging CbC Reports as of mid-2018, including those under EU Council Directive 2016/881/EU and bilateral competent authority agreements (including 31 with the United States).

The full list of automatic exchange relationships that are now in place is available on the OECD website, together with an update on the implementation of the domestic legal framework for CbC Reporting in jurisdictions; on jurisdictions that do not require CbC reporting for 2016 but will permit voluntary parent surrogate filing; and on steps that have been taken by jurisdictions to address a transitional issue for the first year of CbC reporting.

This additional wave of activations of CbC Reporting exchange relationships is another important step towards the timely implementation of Country-by-Country Reporting and reflects the commitment of BEPS Inclusive Framework members from all corners of the world to the fight against base erosion and profit shifting.

February 4, 2018 in BEPS, OECD | Permalink | Comments (0)

Saturday, February 3, 2018

Further progress made in implementation of BEPS measures against tax treaty abuse

On 15 December 2017, Jersey deposited its instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting ("multilateral convention") with the OECD. Subsequently, on 20 December 2017, Curaçao has joined the multilateral convention, following a communication from the Kingdom of the Netherlands to the OECD.[1] A provisional list of reservations and notifications for Curaçao has been provided and a definitive version will be deposited with the OECD at the time of the deposit of the instrument of ratification of the Kingdom of the Netherlands.

This underlines the strong commitment of Jersey and Curaçao to international tax standards to prevent the abuse of tax treaties and base erosion and profit shifting (BEPS) by multinational enterprises.

The multilateral convention offers concrete solutions for governments to close the gaps in existing international tax rules by transposing results from the OECD/G20 BEPS Project into bilateral tax treaties worldwide. The multilateral convention modifies the application of thousands of bilateral tax treaties concluded to eliminate double taxation. Tax treaty-related measures that may be implemented through the multilateral convention include those on hybrid mismatch arrangementstreaty abusepermanent establishment, and mutual agreement procedures, including agreed minimum standards to counter treaty abuse and to improve dispute resolution and an optional provision on mandatory binding arbitration.

"As the third jurisdiction after Austria and the Isle of Man to ratify the multilateral convention following the signing ceremony in June 2017, Jersey is a forerunner in the implementation of the far-reaching reforms agreed under the BEPS Project” said Pascal Saint-Amans, Director of the OECD Centre for Tax Policy and Administration. “I also welcome Curaçao as the 72nd jurisdiction covered by the convention and look forward to other jurisdictions following suit so that the benefits of the convention can take effect and improve the international tax system for the benefit of all our citizens".

Now covering 72 jurisdictions and over 1,100 treaties, the Convention is expected to be signed by additional governments in the near future. 

The multilateral convention was adopted by an ad hoc Group of over 100 jurisdictions working on an equal footing on 24 November 2016 and already covers 72 jurisdictions. The Republic of Austria became the first jurisdiction to deposit its instrument of ratification for the multilateral convention on 22 September 2017, the Isle of Man, the second, on 19 October 2017, and Jersey the third on 15 December 2017. The multilateral convention will enter into force three calendar months after the date of deposit of the fifth instrument of ratification, acceptance or approval.

The OECD is the depositary of the multilateral convention and is supporting governments in the process of signature, ratification and implementation. The position of each party and signatory under the multilateral convention is available on the OECD website.

February 3, 2018 in BEPS, OECD | Permalink | Comments (0)

Friday, February 2, 2018

Panama joins international tax co-operation efforts to end bank secrecy

 The Director-General of Revenue and the delegated Competent Authority of Panama, Publio Ricardo Cortés, has signed the CRS Multilateral Competent Authority Agreement‎ (CRS MCAA), in presence of OECD Deputy Secretary-General Masamichi Kono. Panama is the 98th jurisdiction to join the CRS MCAA, which is the prime international agreement for implementing the automatic exchange of financial account information under the Multilateral Convention on Mutual Administrative Assistance.

By signing the CRS MCAA today, Panama is re-affirming its commitment to the automatic exchange of financial account information pursuant to the OECD/G20 Common Reporting Standard (CRS), with exchanges set to commence in September 2018. The signing of the CRS MCAA will allow Panama to activate bilateral exchange relationships with the other 97 jurisdictions that have so far joined the CRS MCAA.

Members of the Global Forum on Transparency and Exchange of Information for Tax Purposes are working together to monitor and review the implementation of the international standard for the automatic exchange of tax information.

At the signing ceremony, Deputy Secretary-General Masamichi Kono said: "I congratulate Panama on taking this very substantial step towards putting in place a truly global exchange network for the automatic exchange of financial account information. Your signing today puts Panama is an excellent position to fully deliver on its commitment to start CRS exchanges with all interested appropriate partners in September of this year."

The 98 jurisdictions that are signatories to the CRS MCAA can be found at: www.oecd.org/ctp/exchange-of-tax-information/MCAA-Signatories.pdf

February 2, 2018 in OECD | Permalink | Comments (0)

Thursday, February 1, 2018

Eight FTA members kick off multilateral tax risk assurance programme to provide early certainty for tax administrations and MNEs

A pilot of a new FTA programme for the multilateral risk assessment of large MNE groups was launched at an event today in Washington DC. The International Compliance Assurance Programme (ICAP) is a pilot for a voluntary programme that will use CbC Reports and other information to facilitate open and co-operative multilateral engagements between MNE groups and tax administrations, with a view to providing early tax certainty and assurance.

By co-ordinating conversations between an MNE group and tax administrations in several jurisdictions, the programme should also ensure a more effective use of transfer pricing information (including that contained in a group's CbC report, master file and local file), a more efficient use of resources both for the MNE group and for tax administrations and, in the longer term, fewer cases entering into mutual agreement proceedings (MAP). ICAP has been developed under the framework of the OECD Forum on Tax Administration (FTA) Large Business and International Programme, sponsored by the Canada Revenue Agency (CRA).

A pilot for ICAP, which includes eight FTA member tax administrations (Australia, Canada, Italy, Japan, the Netherlands, Spain, the United Kingdom and the United States) was launched at an participant orientation event, introduced by Mr. David Kautter, acting Commissioner of the IRS, and Mr. Bob Hamilton, Commissioner of the CRA. A multilateral assessment of specific international tax risks posed by each MNE group in the pilot will commence during the first half of 2018 and is expected to be completed within a target timeframe of 12 months. A handbook which provides more detail on ICAP and the procedure for the pilot was also launched at the event.

February 1, 2018 in OECD | Permalink | Comments (0)

Monday, January 29, 2018

Major step forward in international tax co-operation as additional countries sign landmark agreement to strengthen tax treaties

Ministers and high-level officials from Barbados, Côte d’Ivoire, Jamaica, Malaysia, Panama and Tunisia have today signed the BEPS Multilateral Convention bringing the total number of signatories to 78. This Convention updates the existing network of bilateral tax treaties and reduces opportunities for tax avoidance by multinational enterprises. 

In addition to those signing today, Algeria, Kazakhstan, Oman and Swaziland have expressed their intent to sign the Convention, and a number of other jurisdictions are actively working towards signature by June 2018. So far, four jurisdictions – Austria, the Isle of Man, Jersey and Poland – have ratified the Convention, which will enter into force three months after a fifth jurisdiction deposits its instrument of ratification. The Convention is the first multilateral treaty of its kind, allowing jurisdictions to integrate results from the OECD/G20 BEPS Project into their existing networks of bilateral tax treaties.

“Today’s signing of the multilateral convention is another major step towards updating the international tax rules through the swift implementation of the BEPS package,” said OECD Secretary-General Angel Gurría.

“Beyond saving signatories from the burden of re-negotiating thousands of tax treaties bilaterally, the convention results in more certainty and predictability for businesses, and a better functioning international tax system for the benefit of our citizens.”

The OECD/G20 BEPS Project delivers solutions for governments to close the gaps in existing international rules that allow corporate profits to « disappear » or be artificially shifted to low or no tax environments, where companies have little or no economic activity. Revenue losses from BEPS are conservatively estimated at up to USD 240 billion annually, or the equivalent of up to 10% of global corporate income tax revenues. Almost 100 countries and jurisdictions are currently working in the Inclusive Framework on BEPS to implement BEPS measures in their domestic legislation and bilateral tax treaties. The sheer number of bilateral treaties makes updates to the treaty network on a bilateral basis burdensome and time-consuming.

The Convention, developed through inclusive negotiations involving more than 100 countries and jurisdictions under a mandate delivered by G20 Finance Ministers and Central Bank Governors, solves this problem. It will modify existing bilateral tax treaties to swiftly implement the tax treaty measures developed in the course of the OECD/G20 BEPS Project. Treaty measures that are included in the Convention include those on hybrid mismatch arrangementstreaty abuse and permanent establishment, and dispute resolution, including an optional provision on mandatory binding arbitration, which has been taken up by 28 jurisdictions.


The OECD is the depositary of the Convention and is supporting governments in the process of signature, ratification and implementation.

The text of the Convention, the explanatory statement, background information, database, and position of each signatory are available at http://oe.cd/mli.

January 29, 2018 in OECD | Permalink | Comments (0)

150 Pages of comments on new tax rules requiring disclosure of CRS avoidance arrangements and offshore structures

On 11 December 2017, interested parties were invited to provide comments on a discussion draft on model mandatory disclosure rules. The model rules are intended to target promoters and service providers with a material involvement in the design, marketing or implementation of CRS avoidance arrangements or offshore structures. The proposed rules would require such intermediaries to disclose information on the scheme to their national tax authority. The rules contemplate that information on those schemes (including the identity of any user or beneficial owner) would then be made available to other tax authorities in accordance with the requirements of the applicable information exchange agreement.

Download Public-comments-mandatory-disclosure-rules-for-CRS-avoidance-arrangements-offshore-structures

January 29, 2018 in OECD | Permalink | Comments (0)

Monday, November 20, 2017

The Global Forum on Tax Transparency intensifies the pressure on tax evaders worldwide

In the aftermath of the  release of the “Paradise Papers”, 200 delegates from more than 90 delegations met in Yaoundé, Cameroon for the 10th meeting of the Global Forum on Transparency and Exchange of Information for Tax Purposes which now includes 147 countries and jurisdictions.
 
The Global Forum adopted the first report on the status of implementation of the AEOI Standarda few weeks after almost 50 countries started exchanges of information under the new standard on automatic exchange of information, with another 53 countries starting in September 2018. The principle of annual implementation reports and peer reviews were agreed at the meeting to ensure effective implementation and a level playing field.
 
The Global Forum published peer reviews of Curaçao, Denmark, India, Isle of Man, Italy and Jersey. The publications bring to a total of 16 the number of second round reviews of the Forum’s 147 member countries and jurisdictions based on its international standard of transparency and exchange of financial account information on request. The standard was reinforced last year to tackle tax evasion more effectively, particularly in areas covering the concept of beneficial ownership.
 

November 20, 2017 in GATCA, OECD | Permalink | Comments (0)