International Financial Law Prof Blog

Colombia Joins OECD's International Compliance Assurance Program (ICAP)

The International Compliance Assurance Programme (ICAP) is a voluntary risk assessment and assurance programme to facilitate open and co-operative multilateral engagements between MNE groups and tax administration in jurisdictions where they have activities. Colombia will start participating in September 2021.

TAX ADMINISTRATIONS PARTICIPATING IN ICAP

The tax administrations participating in ICAP are listed below. This list will be updated as further tax administrations confirm participation in the programme.

• Australia
• Austria
• Belgium
• Canada
• Colombia
• Denmark
• Finland
• France
• Germany
• Ireland
• Italy
• Japan
• Luxembourg
• Netherlands
• Norway
• Poland 
• Russia
• Singapore
• Spain
• United Kingdom
• United States

WHERE TO FIND OUT MORE

In addition to the ICAP Handbook, further information on the tax administrations participating in ICAP can be found in this database (.xlsx). Questions concerning the programme may also be directed to [email protected].

ICAP AWARENESS SESSIONS

In March and April 2021, the OECD held two awareness sessions for MNEs willing to learn more about the programme. Download the supporting presentation (PDF) used during these sessions.

ICAP FREQUENTLY ASKED QUESTIONS

A list of frequently asked questions from MNE groups are available.

Find out more about the OECD work on:

• Forum on Tax Administration
• Country-by-Country Reporting (BEPS Action 13)
• Mutual Agreement Procedures (BEPS Action 14)
• Tax certainty 

ICAP HANDBOOK

The International Compliance Assurance Programme: Handbook for tax administrations and MNE groups contains information on the process for ICAP reflecting the experience and feedback of tax administrations and MNE groups that participated in two pilots for the programme, commencing in 2018 and 2019. The handbook includes a detailed description of each stage of the ICAP process, the documentation and information an MNE group participating in ICAP will provide, the level of comfort they may achieve as a result of participation in the programme, and a comparison of ICAP with other possible routes to greater tax certainty.  Download the handbook

Ending the Shell Game: Cracking down on the Professionals who enable Tax and White Collar Crimes

White collar crimes like tax evasion, bribery, and corruption are often concealed through complex legal structures and financial transactions facilitated by lawyers, accountants, financial institutions and other "professional enablers" of such crimes. These crimes have significant impacts on government revenue, public confidence and economic growth, including the recovery from COVID-19. This report sets out a range of strategies and actions for countries to take to tackle professional intermediaries who enable tax evasion and other financial crimes on behalf of their criminal clients. The report highlights the damaging role played by these intermediaries and the importance of concerted domestic and international action in clamping down on the enablers of crime, and includes recommended counter-strategies for deterring, disrupting, investigating and prosecuting the professionals who enable tax and white collar crimes.

• OECD work on tax and crime

Find 2021 report here

2021 OECD GLOBAL ANTI-CORRUPTION & INTEGRITY FORUM

This report will be presented at the virtual OECD Global Anti-Corruption and Integrity Forum on 23-25 March 2021. You are invited to register to the event and join the session on "Professional Enablers of Tax Crime" taking place on 24 March 2021 at 16:45 (CET). This session will highlight the damaging role played by intermediaries who enable financial crimes on behalf of their criminal clients, and the importance of concerted domestic and international action in clamping down on the enablers of crime.

Harmful Tax Practices: Peer Review Transparency Framework

This document sets out the new terms of reference, methodology and questionnaires for conducting the annual review of jurisdictions’ compliance with the BEPS Action 5 transparency framework for the 2021-2025 period.

Preferential tax regimes

In January 2019, the OECD released Harmful Tax Practices - 2018 Progress Report on Preferential Regimes, approved by the OECD/G20 Inclusive Framework on BEPS. The Progress Report includes the results of the review of preferential tax regimes, which has been undertaken by the Forum on Harmful Tax Practices (FHTP) since the start of the BEPS Project in accordance with the BEPS Action 5 minimum standard. It reflects results as at January 2019. While the consolidated regime results are now contained in the 2018 Progress Report, the 2017 Progress Report includes important guidance on the standards applicable to substantial activities requirements for non-IP regimes, the timelines for amending or abolishing regimes and the monitoring of certain regimes in practice.

The 2018 Progress Report also includes three annexes:

1. Output of BEPS Action 5 mandate for considering revisions or additions to FHTP framework;
2. Monitoring data on grandfathered non-IP regimes; and
3. Key reference documents.

In November 2020, the Inclusive Framework released updated conclusions on the review of preferential regimes.

Transparency framework

On 1 February 2017, the OECD released the Terms of Reference and Methodology for peer reviews on the Action 5 standard for the exchange of information on tax rulings (the "transparency framework"), approved by the Inclusive Framework on BEPS. The peer review and monitoring process will be conducted by the Forum on Harmful Tax Practices (FHTP) in accordance with the Terms of Reference and Methodology, with all members participating on an equal footing.

The Terms of Reference are broken down into four aspects, which capture the key elements of the transparency framework:

1. Information gathering process;
2. Exchange of information;
3. Confidentiality of information received;
4. Statistics.

The methodology sets out the procedural mechanisms by which jurisdictions will complete the peer review, including the process for collecting the relevant data, the preparation and approval of reports, the outputs of the review and the follow up process. The methodology contemplates collecting the data points relevant to the peer review by using standardised questionnaires, sent to the reviewed jurisdiction as well as the peers (i.e. the other members of the Inclusive Framework on BEPS). 

Peer Review Reports on the Exchange of Information on Tax Rulings

• 2019 Peer Review Reports - This report reflects the outcome of the fourth annual peer review of the implementation of the Action 5 minimum standard and covers 124 jurisdictions. It assesses implementation for the 1 January - 31 December 2019 period.
• 2018 Peer Review Reports - This report reflects the outcome of the third annual peer review of the implementation of the Action 5 minimum standard and covers 112 jurisdictions. It assesses implementation for the 1 January 2018 – 31 December 2018 period.
• 2017 Peer Review Reports - This report reflects the outcome of the second annual peer review of the implementation of the Action 5 minimum standard and covers 92 jurisdictions. It assesses implementation for the 1 January 2017 – 31 December 2017 period.
• 2016 Peer Review Reports - The first annual report on compliance with the transparency framework covers the jurisdictions which participated in the BEPS Project prior to the creation of the Inclusive Framework. It assesses implementation for the 1 January 2016 – 31 December 2016 period.

Schema for the exchange on tax rulings

The Exchange on Tax Rulings XML Schema and User Guide standardised electronic format for the exchange on tax rulings between jurisdictions.

A dedicated XML Schema and User Guide have also been developed to provide structured feedback on received exchange of tax rulings (ETR) information. The ETR Status Message XML Schema will allow tax administrations to provide structured feedback to the sender on frequent errors encountered, with a view to improving overall data quality and receiving corrected information, where necessary.

The current version of the ETR XML Schema and User Guide, as well as the related Status Message Schema and User Guide, is applicable for all exchanges until 31 March 2020, whereas the second, new version will be in use as from 1 April 2020. 

Global standard on substantial activities in no or only nominal tax jurisdictions

The Inclusive Framework on BEPS has decided to resume the application of the substantial activities requirement for no or only nominal tax jurisdictions. Originally a criteria set out in the harmful tax framework from 1998, it had not been applied to date. However, with the elevation of the substantial activities requirements in preferential regimes, and the broad-based membership of the Inclusive Framework working together on an equal footing, it was considered the right time to ensure that equivalent substance requirements apply in no or only nominal tax jurisdictions. This global standard means that mobile business income cannot be parked in a zero tax jurisdiction without the core business functions having been undertaken by the same business entity, or in the same location. In doing so, the Inclusive Framework will ensure that substantial activities must be performed in respect of the same types of mobile business activities, regardless of whether they take place in a preferential regime or in a no or only nominal tax jurisdiction.

In July 2019, the Inclusive Framework released the results of the review of no or only nominal tax jurisdictions.

In October 2019, the Inclusive Framework released guidance on the framework for the spontaneous exchange of information collected by no or only nominal tax jurisdictions pursuant to the standard. The guidance addresses the practical modalities regarding the exchange of information requirements of the standard, including the exchange timelines, the international legal framework and clarifications on the key definitions. The guidance also contains the standardises IT-format to be used for the exchanges, the NTJ XML Schema.

63 countries and jurisdictions ratify Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting

Croatia and Malaysia have deposited their instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (Multilateral Convention or MLI), which now covers over 1700 bilateral tax treaties, thus underlining their strong commitment to prevent the abuse of tax treaties and base erosion and profit shifting (BEPS) by multinational enterprises. For Croatia and Malaysia, the MLI will enter into force on 1 June 2021.

With 95 jurisdictions currently covered by the MLI, the ratifications today by Croatia and Malaysia now bring to 63 the number of jurisdictions which have ratified, accepted or approved it. The Multilateral Convention became effective on 1 January 2021 for approximately 650 treaties concluded among the 63 jurisdictions, with an additional 1200 treaties to become effectively modified once the MLI will have been ratified by all Signatories.

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

Updated guidance on tax treaties and the impact of the COVID-19 pandemic

This note revisits the guidance issued by the OECD Secretariat in April 2020 on the impact of the COVID-19 pandemic on tax treaties.

Unprecedented measures imposed or recommended by governments, including travel restrictions and curtailment of business operations (broadly referred to in this guidance as public health measures), have been in effect in most jurisdictions in various forms and stages during most of 2020 due to the COVID-19 pandemic and this situation is expected to continue in 2021. This guidance is intended to provide more certainty to taxpayers during this exceptional period.

This guidance represents the Secretariat’s views on the interpretation of the provisions of tax treaties (i.e. each jurisdiction may adopt its own guidance to provide tax certainty to taxpayers). But it reflects the general approach of jurisdictions and illustrates how some jurisdictions have addressed the impact of COVID-19 on the tax situations of individuals and employers.

The guidance is relevant only to circumstances arising during the COVID-19 pandemic when public health measures are in effect. It seeks to avoid instances of double taxation but cannot be relied on to create instances of double non-taxation. Much of the analysis covers circumstances where factual determinations by tax administrations are required and the guidance does not purport to replace the judgement of tax administrations in those cases.

• Concerns related to the creation of permanent establishments
• Concerns related to change of residence
• Concerns related to income from employment

Uganda commits to start automatic exchange of financial account information by 2023

Uganda has committed to implement the international Standard for Automatic Exchange of Financial Account Information in Tax Matters (AEOI) by 2023. The commitment made by the Minister of Finance, Planning and Economic Development, the honorable Matia Kasaija, makes Uganda the 116^th Global Forum member to commit to start AEOI by a specific date.

Maria José Garde, Chair of the Global Forum, said “I am delighted to welcome Uganda’s commitment to the AEOI Standard. As for the 115 other committed jurisdictions, the Global Forum will monitor Uganda’s progress in delivering its commitment to start exchanging automatically by September 2023 and updates will be provided to our members and the G20. The Global Forum Secretariat will assist Uganda in implementing the Standard and in addressing any challenges that may arise”.

This powerful new tool will help generate additional taxable revenues for Uganda, by allowing it to identify cases of tax evasion, and will certainly increase tax compliance.

The Global Forum is the leading multilateral body mandated to ensure that jurisdictions around the world adhere to and effectively implement both the standard of transparency and exchange of information on request and the standard of automatic exchange of financial account information. These objectives are achieved through a robust monitoring and peer review process. The Global Forum also runs an extensive capacity-building programme to support its members in implementing the standards and help tax authorities make the best use of cross-border information sharing channels.

Background information:

• Plan of action for developing countries participation in AEOI
• Peer Review of the Automatic Exchange of Financial Account Information 2020
• 2021 Global Forum Capacity Building Report

Germany and Pakistan deposit their instrument of ratification for the Multilateral BEPS Convention and other updates

Germany and Pakistan have deposited their instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (Multilateral Convention or MLI), which now covers almost 1700 bilateral tax treaties, thus underlining its strong commitment to prevent the abuse of tax treaties and base erosion and profit shifting (BEPS) by multinational enterprises. For Germany and Pakistan, the MLI will enter into force on 1 April 2021.

With 95 jurisdictions currently covered by the MLI, today’s ratification by Germany and Pakistan now brings to 59 the number of jurisdictions which have ratified, accepted or approved it. The Multilateral Convention will become effective on 1 January 2021 for over 600 treaties concluded among the 59 jurisdictions, with an additional 1200 treaties to become effectively modified once the MLI will have been ratified by all Signatories.

In addition, Switzerland notified in relation to Article 35(7)(a)(i) of the MLI the confirmation of the completion of its internal procedures for the entry into effect of the provisions of the MLI with respect to its treaties with the Czech Republic and Lithuania in accordance with Article 35(7)(b) of the MLI.

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

OECD Tax Policy Reviews: Kazakhstan 2020

This report is part of the OECD Tax Policy Reviews publication series. The Reviews are intended to provide independent, comprehensive and comparative assessments of OECD member and non-member countries’ tax systems as well as concrete recommendations for tax policy reform. By identifying tailored tax policy reform options, the objective of the Reviews is to enhance the design of existing tax policies and to support the adoption of new reforms. This report provides an assessment of Kazakhstan's tax system and recommendations for tax reform. Chapter 1 gives an overview of the main findings and Chapter 2 sets the scene for tax reform. Chapter 3 considers tax revenue trends and analysis of the tax mix. Chapter 4 examines equity issues in Kazakhstan and provides recommendations on the personal income tax, social security contributions and value added taxes. Chapter 5 focuses on tax competitiveness issues and provides recommendations on how to strengthen the design of both the corporate income tax and special tax regimes for SMEs.

 

OECD Reviews: https://www.oecd-ilibrary.org/taxation/oecd-tax-policy-reviews_de3719f2-en

131 jurisdictions auto-share corporate CbCR tax, financial, and operation information

The OECD has released the outcomes of the third phase of peer reviews of the BEPS Action 13 Country-by-Country (CbC) reporting initiative, demonstrating strong progress in continuing efforts to improve the taxation of multinational enterprises (MNEs) worldwide.

CbC reporting, one of the four minimum standards of the BEPS Project, requires tax administrations to collect and share detailed information on all large MNEs doing business in their country. Information collected includes the amount of revenue reported, profit before income tax, and income tax paid and accrued, as well as the stated capital, accumulated earnings, number of employees and tangible assets, broken down by jurisdiction. CbC reporting provides an unprecedented level of transparency to tax administrations worldwide. As a result, tax administrations, often for the first time, will have received detailed information on all large MNEs doing business in their country. As CbC Reporting is one of the four minimum standards of the BEPS Project, all members of the Inclusive Framework on BEPS have committed to implement it, and to have their compliance with the standard reviewed and monitored by their peers. This is to ensure a timely and consistent implementation across the world, which is key to the success of CbC reporting.

This third annual peer review considers implementation of the CbC reporting minimum standard by jurisdictions as of April 2020. Highlights include:

• Coverage increased to 131 jurisdictions. The peer review includes a comprehensive examination of 131 Inclusive Framework members. A small number of members were not included in this review either because they recently joined the Inclusive Framework or they faced capacity constraints, but these will be reviewed as soon as possible.
  
  
• Practically all MNEs that are over the threshold for filing are now covered. Over 90 jurisdictions have already introduced legislation to impose a filing obligation on MNE groups, covering almost all MNE Groups with consolidated group revenue at or above the threshold of EUR 750 million. Remaining Inclusive Framework members are working towards finalising their domestic legal frameworks with the support of the OECD.
  
  
• Implementation largely consistent with BEPS Action 13. Where legislation is in place, the implementation of CbC Reporting has been found largely consistent with the Action 13 minimum standard.
  
  
• Jurisdictions acting on prior recommendations. A large number of recommendations made in the first two peer review phases have now been addressed and these recommendations have been removed.
  
  
• Over 2500 exchange relationships now in place. Exchanges of CbC reports began in June 2018 and more than 2500 bilateral relationships for CbC exchanges are now in place.

Related work

In addition, work progresses on the 2020 review of the CbC reporting minimum standard, to be completed this year. This will take into account feedback received from a public consultation, including a meeting held in May 2020 via Zoom with around 270 participants from business and non-business stakeholders.

Consultancy – Roster of Tax Experts (Tax Inspectors Without Borders)

Location :	Varies for each call-off assignment
Application Deadline :	30-Sep-20 (Midnight New York, USA)
Time left :	27d 9h 1m
Additional Category :	Management
Type of Contract :	Individual Contract
Post Level :	International Consultant
Languages Required :	Arabic   English   French   Russian   Spanish   Portuguese
Starting Date : (date when the selected candidate is expected to start)	01-Oct-2020
Duration of Initial Contract :	Varies for each call-off assignment
Expected Duration of Assignment :	Varies for each call-off assignment
REFER A FRIEND  APPLY NOW

Background

Objective: The purpose of this procurement exercise is to relaunch the roster of Tax Experts to support the Tax Inspectors Without Borders (TIWB) Initiative. TIWB is a joint initiative of the United Nations Development Programme (UNDP) and the Organisation for Economic Co-operation and Development (OECD) launched in 2015 to support developing countries strengthen national tax administrations. In 2017, UNDP established a roster of tax experts to undertake TIWB missions to host countries – the countries where the TIWB programme is being implemented. Over time there has been an increased demand for specific tax audit expertise as well as for TIWB expertise in other areas related to taxation. Accordingly, a new roster of tax experts is being launched. Background: The UNDP is the United Nation's global development network, advocating for change and connecting countries to knowledge, experience, and resources to help people build a better life. UNDP is on the ground in 170 countries and territories, supporting solutions to development challenges in these countries and developing national and local capacities that will help them achieve human development and the Sustainable Development Goals. UNDP's policy work carried out at HQ, Regional and Country Office levels, forms a spectrum of deep local knowledge to cutting-edge global perspectives and advocacy. In this context, UNDP invests in the Global Policy Network (GPN), a network of field-based and global technical expertise across a wide range of knowledge domains and in support of the signature solutions and organizational capabilities envisioned in the Strategic Plan. Within the GPN, the Bureau for Policy and Programme Support (BPPS) has the responsibility for developing all relevant policy and guidance to support the results of UNDP's Strategic Plan. The OECD is a global economic forum working with 37 member countries and more than 100 emerging and developing economies to make better policies for better lives. Its mission is to promote policies that will improve the economic and social well-being of people around the world. The OECD provides a forum in which governments work together to share experiences on what drives economic, social, and environmental change, seeking solutions to common problems. TIWB is a joint initiative of the UNDP and OECD launched in 2015 to support developing countries strengthen national tax administrations. The TIWB Secretariat is hosted at the OECD in Paris. Within UNDP, TIWB is managed under the Finance Sector Hub (FSH) - a finance and innovation platform, that draws on a critical mass of UNDP expertise, initiatives, and partnerships to support the mobilization and leveraging of resources for the SDGs and lead the implementation of the new UNDP’s private sector strategy and other initiatives. FSH is an integral part of both the Bureau for Policy and Programme Support (BPPS) and the Bureau of External Relations and Advocacy (BERA), as well as part of the GPN. TIWB is managed under the Finance Sector Hub, Bureau for Policy and Programme Support, New York with resource persons embedded in the UNDP offices in Pretoria, Bangkok, and Amman and a back office in Istanbul. TIWB aims to strengthen tax administrations by transferring knowledge and technical skills to developing countries’ tax administrators. Under TIWB, tax experts work alongside local officials of developing country tax administrations on tax-related issues, delivering practical solutions by working on confidential matters while operating under strict oaths of secrecy/ confidentiality agreements. With 77 completed and ongoing programmes (including 13 South-South programmes) in 44 countries and jurisdictions, TIWB has contributed to over USD 532 million in additional revenues and tax assessments in excess of USD 1,750 million.  Building on the success of the TIWB model and recognizing the needs of tax administrations, TIWB has expanded to provide support in other tax areas. These include Tax and Crime Investigations, Effective use of Automatically Exchanged Information, Tax Treaty Negotiations and Implementation, Tax and Natural Resource Contracts, and Tax and Environment. To support this new phase of the TIWB Initiative, UNDP is launching a new TIWB roster. Further, as part of the UNDP’s capacity enhancement efforts, the new TIWB roster is being brought on an automated platform as part of the GPN/ExpRes Roster. The new TIWB roster will have the following six thematic areas. A. Tax Audits; B.  Tax and Crime Investigations; C.  Effective Use of Automatically Exchanged Information; D. Tax Treaty Negotiations and Implementation; E. Taxation and Natural Resource Contracts; F.  Taxation and Environment.

Duties and Responsibilities

Scope of work, responsibilities and description of the proposed work: The UNDP is looking for tax experts to work as TIWB experts in different parts of the world. The main responsibility will be to provide technical assistance to tax administrations and other government agencies of developing countries in one of the thematic areas listed above. Experts will need to demonstrate extensive professional experience in the selected thematic area. The assignments require close collaboration with the TIWB Secretariat, the UNDP, and the host administration in the developing country. The role will require traveling to developing countries to deliver four to six missions a year, each lasting one to two weeks. While a typical TIWB programme is on average 12 to 18 months long, the exact duration and frequency of missions depends on the programme. In between on-site TIWB missions, there is a component of TIWB remote assistance. In times of restrictions on travel due to COVID-19, TIWB assistance is being provided remotely. Expected outputs and deliverables: The representative set of duties and responsibilities listed below is not exhaustive, and the terms of reference of each assignment will dictate the exact scope of the work. Key areas of support and activities will include: Deliver practical TIWB tax assistance to host administrations of requesting countries; Assist the TIWB Secretariat in undertaking an analysis of the legislative, institutional and skills gaps and transfer of skills before (through baseline assessments) and after delivery of TIWB programmes; Provide training on different topics at capacity-building workshops organized by the TIWB Secretariat, UNDP Country Offices and other international partners; Prepare mission (and other) reports after every mission and at the end of the programme, including an evaluation of the programme; Support the development of learning materials and internal guidelines or administrative practices, including case studies and documentation of lessons learned; Attend, international and regional tax organization networking events to build capacity through knowledge sharing as part of TIWB programmes.

Competencies

Core competencies: Demonstrates integrity by modelling the United Nation’s values and ethical standards, including demonstrating there are no conflicts of interest relating to any aspect of services provided to TIWB/UNDP/ host countries; Promotes the vision, mission, and strategic goals of UNDP, and partner organizations; Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability; Able to work independently. Functional competencies: Technical expertise in at least one of the thematic tax areas listed above; Highly organized with strong analytical and research skills; Excellent presentation and communications skills; Ability to prepare succinct reports; Ability to work in a team; Diplomatic sensitivity and effective negotiating skills; Focus on impact and results and positive response to critical feedback; Flexible thinking.

Required Skills and Experience

Candidates may only apply for one thematic area that best suits their expertise. The six thematic areas along with the required and desired qualifications are as under: A. Thematic Area - TAX AUDITS (Total – 100 Points) Required Qualifications: Education: Minimum Bachelor’s degree required. Relevant and advanced degrees in taxation, public finance, law or other relevant fields will be scored higher (Max 10 points); Experience: At least seven years of substantial, proven experience in tax auditing obtained from recently serving in a tax administration/ relevant Ministry or government agency is required (in cases where the candidate has a relevant Masters’ degree, a minimum of five years relevant professional experience is required). Substantial and additional experience will be scored higher (Max 20 points); At least five years of work experience on international tax issues and in conducting transfer pricing audits, including experience in developing general audit approaches (e.g. risk assessment, case selection, audit planning) is required. Substantial and additional experience will be scored higher (Max 10 points);  Language: Working knowledge and communication skills in English is required. Desirable Qualifications: Course/certification(s) from a recognized national/ international organization/ institute in taxation, public finance, law or other field related to tax audits (Max – 5 points); Relevant experience in policy design and/or drafting tax legislation (Max – 10 points); Sectoral audit experience, particularly in extractives, telecom, tourism, finance, and banking (Max – 10 points); Proven experience of providing training and capacity development support to tax administration officials related to tax audits is desirable, experience of working on such capacity development programmes of United Nations system/ OECD/ IMF/ World Bank or similar organization (Max -10 points);       Experience of working in one or more of the following regions: Latin America & Caribbean; Africa; Arab States; Eastern Europe & CIS; Asia Pacific (Max - 10 points); Fluency in the use of software like Word, Excel, and PowerPoint (Max – 5 points); Fluency and specific working knowledge in one or more of the following languages - English/ French/ Portuguese/ Spanish/ Arabic/ Russian (Max. 10 points). Please note that fluency in any of these languages implies that you will be able to take on assignments in the specified language. B. Thematic Area - TAX AND CRIME INVESTIGATIONS (Total – 100 points) Required Qualifications: Education: Minimum Bachelor’s degree required. Relevant and advanced degrees in taxation, public finance, law or other relevant fields will be scored higher (Max 10 points); Experience: Minimum seven years of substantial, proven experience in tax/ other financial crime investigations/ money laundering transactions/ illicit financial flows obtained from recently serving in a tax administration or government/ investigative/ enforcement agency is required (in cases where the candidate has a relevant Masters’ degree, a minimum of five years professional experience is required). Substantial and additional experience will be scored higher (Max 30 points); Language: Working knowledge and communication skills in English is required. Desirable Qualifications: Course/ certification from a recognized national/ international organization/ institute in taxation, public finance, law or other field related to tax crimes/ other financial crimes (Max – 10 marks); Substantial experience in working on legislation and/or policy design related to financial/ tax crimes (Max – 10 points); Experience in drafting administrative/ Operational manuals/ guidance/ writing academic papers related to tax and crime (Max – 5 marks); Proven experience in providing training to tax/ other investigative agency officials related to tax and crime/ other financial crimes investigations is desirable, experience of working on such capacity development programmes of United Nations system/ OECD/ IMF/ World Bank or similar organisation (Max -10 marks);       Experience of working in one or more of the following regions: Latin America & Caribbean; Africa; Arab States; Eastern Europe & CIS; Asia Pacific (Max - 10 points); Fluency in the use of software like Word, Excel, and PowerPoint (Max – 5 points); Fluency and specific working knowledge in one or more of the following languages - English/ French/ Portuguese/ Spanish/ Arabic/ Russian (Max. 10 points). Please note that fluency in any of these languages implies that you will be able to take on assignments in the specified language. C. Thematic Area – EFFECTIVE USE OF AUTOMATICALLY EXCHANGED INFORMATION (Total – 100 points) Required Qualifications: Education: Minimum Bachelor’s degree required. Relevant and advanced degrees in taxation, public finance, law, information technology or other relevant fields will be scored higher (Max 10 points); Experience: At least five years of substantial experience in the field of exchange of information for tax purposes at the tax administration level and/or in compliance activities with respect to offshore financial assets obtained from recently serving in a tax administration/ relevant Ministry or government agency is required (in cases where the candidate has a relevant Masters’ degree, a minimum of three years relevant professional experience is required). Substantial and additional experience will be scored higher (Max 30 points); Language: Working knowledge and communication skills in English is required. Desirable Qualifications: Course/certification(s) from a recognized national/ international organization/ institute in taxation, public finance, law or other field related to exchange of information for tax purposes or automatic exchange of information (Max – 10 points); Substantial experience in working on legislation and/or policy design related to the exchange of information for tax purposes or automatic exchange of information (Max – 10 points); Experience in drafting administrative/ Operational manuals/ guidance/ writing academic papers related to the exchange of information or automatic exchange of information (Max – 5 points); Proven experience in providing assistance, guidance and/or training to tax/ other investigative agency officials is desirable, experience of working on such capacity development programmes of United Nations system/ OECD/ IMF/ World Bank or similar organization (Max -10 marks); Experience of working in one or more of the following regions: Latin America & Caribbean; Africa; Arab States; Eastern Europe & CIS; Asia Pacific (Max - 10 points); Fluency in the use of software like Word, Excel, and PowerPoint (Max – 5 points); Fluency and specific working knowledge in one or more of the following languages - English/ French/ Portuguese/ Spanish/ Arabic/ Russian (Max. 10 points). Please note that fluency in any of these languages implies that you will be able to take on assignments in the specified language. D. Thematic Area – TAX TREATY NEGOTIATIONS AND IMPLEMENTATION (Total – 100 points) Required Qualifications: Education: Minimum Bachelor’s degree required. Relevant and advanced degrees in taxation, public finance, law or other relevant fields will be scored higher (Max 10 points); Experience: At least seven years substantial, proven experience in tax treaty negotiations and implementation obtained from recently serving in a tax administration/ relevant Ministry or government agency is required (in cases where the candidate has a relevant Masters’ degree, a minimum of five years relevant professional experience is required). Substantial and additional experience will be scored higher Max 30 points); Language: Working knowledge and communication skills in English is required. Desirable Qualifications: Course/certification(s) from a recognized national/ international organization/ institute in taxation, public finance, law or other field related to taxation (Max – 10 points); Substantial experience in working on legislation and/or policy design related to tax treaty negotiations and implementation (Max – 10 points); Experience in drafting administrative/ Operational manuals/ guidance/ writing academic papers related to tax treaty negotiations and implementation (Max –5 points); Proven experience in providing training to participants and technically proficient audiences is desirable, experience of working on such capacity development programmes of United Nations system/ OECD/ IMF/ World Bank or similar organization (Max – 10 marks);           Experience of working in one or more of the following regions: Latin America & Caribbean; Africa; Arab States; Eastern Europe & CIS; Asia Pacific (Max - 10 points); Fluency in the use of software like Word, Excel, and PowerPoint (Max – 5 points); Fluency and specific working knowledge in one or more of the following languages - English/ French/ Portuguese/ Spanish/ Arabic/ Russian (Max. 10 points). Please note that fluency in any of these languages implies that you will be able to take on assignments in the specified language. E. Thematic Area – TAXATION AND NATURAL RESOURCES CONTRACTS (Total – 100 points) Required Qualifications: Education: Minimum Bachelor’s degree required. Relevant and advanced degrees in taxation, public finance, law or other relevant fields will be scored higher (Max 10 points); Experience: At least seven years of substantial, proven experience in international taxation, natural resources contracts, and extractive industries obtained from recently serving in a tax administration/ relevant Ministry or government agency. This could include negotiating and /or drafting commercial contracts settlements or arbitration associated with taxation clauses in natural resource contracts is required (in cases where the candidate has a relevant Masters’ degree, a minimum of five years relevant professional experience is required). Substantial and additional experience will be scored higher (Max 30 points); Language: Working knowledge and communication skills in English is required. Desirable Qualifications: Course/certification(s) from a recognized national/ international organization/ institute in taxation, public finance, law or other field related to taxation and natural resources contracts (Max – 10 points); Substantial experience in working on legislation and/or policy design related to taxation and natural resources contracts (Max – 10 points); Experience in drafting administrative/ Operational manuals/ guidance/ writing academic papers related to taxation and natural resources contracts (Max –5 points); Proven experience in providing training to participants and technically proficient audiences is desirable, experience of working on such capacity development programmes of United Nations system/ OECD/ IMF/ World Bank or similar organization will be an advantage (Max -10 marks); Experience of working in one or more of the following regions: Latin America & Caribbean; Africa; Arab States; Eastern Europe & CIS; Asia Pacific (Max - 10 points); Fluency in the use of software like Word, Excel, and PowerPoint (Max – 5 points); Fluency and specific working knowledge in one or more of the following languages - English/ French/ Portuguese/ Spanish/ Arabic/ Russian (Max. 10 points). Please note that fluency in any of these languages implies that you will be able to take on assignments in the specified language. F. Thematic Area – TAXATION AND ENVIRONMENT (Total – 100 points) Required Qualifications: Education: Minimum Bachelor’s degree required. Relevant and advanced degrees in taxation, public finance, law or other relevant fields will be scored higher (Max 10 points); Experience: At least seven years of substantial, proven experience in taxation and environmental issues obtained from recently serving in a tax administration/ relevant Ministry or government agency is required. This could include experience in taxation and forestry, fisheries and/ or carbon taxes (in cases where the candidate has a relevant Masters’ degree, a minimum of five years relevant professional experience is required). Substantial and additional experience will be scored higher (Max 30 points); Language: Working knowledge and communication skills in English is required. Desirable Qualifications: Course/certification(s) from a recognized national/ international organization/ institute in taxation, public finance, law or other field related to taxation and environment (Max – 10 points); Three years of substantial experience in working on legislation and/or policy design related to taxation and environment (Max – 10 points); Experience in drafting administrative/ Operational manuals/ guidance/ writing academic papers related to taxation and environment (Max – 5 points); Proven experience in providing training to participants and technically proficient audiences is desirable, experience of working on such capacity development programmes of United Nations system/ OECD/ IMF/ World Bank or similar organization (Max -10 marks); Experience of working in one or more of the following regions: Latin America & Caribbean; Africa; Arab States; Eastern Europe & CIS; Asia Pacific (Max - 10 points); Fluency in the use of software like Word, Excel, and PowerPoint (Max – 5 points); Fluency and specific working knowledge in one or more of the following languages - English/ French/ Portuguese/ Spanish/ Arabic/ Russian (Max. 10 points). Please note that fluency in any of these languages implies that you will be able to take on assignments in the specified language. Application Procedure: The application package containing the following (to be uploaded as one file): Completed Thematic Area form (Annexure 1-6) indicating how the candidate fulfils the stated requirements (you may only apply for one thematic area). Please indicate the language (s) for which you are applying (English/ French/ Portuguese/ Spanish/ Arabic/ Russian) in the space given in the thematic area form. Completed P11 form (Annexure 7), indicating all past experience from similar projects and specifying the relevant assignment period (from/to), as well as the email and telephone contacts of at least three (3) professional references; Notes: Convert the completed thematic area form and P11 form into PDF and merge them into a single document as the system allows uploading of only one document. Please also note that applications must be submitted in English language irrespective of the language(s) you are applying.  Due to the large number of applications we receive, we are able to inform only the successful candidates about the outcome or status of the selection process. Shortlisted candidates (ONLY) will be requested to submit a Financial Proposal. The financial proposal should specify an all-inclusive daily fee (based on a 7-hour working day - lunch time is not included). This daily professional fee is exclusive of travel, accommodation and other subsistence costs incurred during missions. UNDP will arrange for travel by purchasing the return ticket; a standard DSA rate (daily sustenance) will be paid to the expert who in turn will arrange for their own accommodation, local travel and food. Experts will be responsible for their own IT equipment, mobile phones, and travel insurance and medical insurance. If the Offeror is employed by an organization/company/institution, and he/she expects his/her employer to charge a management fee in the process of releasing him/her to UNDP under a Reimbursable Loan Agreement (RLA), the Offeror must indicate at this point, and ensure that all such costs are duly incorporated in the financial proposal submitted to UNDP. The Financial Proposal is to be submitted as per the instruction in the separate email that will be sent ONLY to shortlisted candidates. 6. Evaluation process: Applicants will be evaluated against the criteria specified in the thematic area they have applied for. Applicants must meet the required qualifications. Candidates meeting the required qualifications will be scored based on a total of 100 points. Applicants obtaining 70 points and above (with a minimum of 30 in required qualifications) will be invited for the interview. The interview will be of 40 points. Candidates who obtain a minimum of 30 points in the interview will be requested to submit a financial proposal and included in the Roster. While no financial evaluation will be done for candidates at this stage, the reasonableness of the quoted daily professional fees shall be assessed based on the UN rate. If the proposed daily rate is too high and a mutually acceptable rate cannot be agreed upon, UNDP will not be able to include the candidate into the roster. Contract Award and other arrangements: Several successful individuals will be considered technically qualified and will be offered to be placed on the roster. When opportunities arise, tax experts on the roster will be contacted for availability and asked to submit a financial proposal for the assignments fitting their thematic area. The daily professional fee quoted by each candidate during the application stage will be the maximum fee to be quoted when a call is sent to the roster before a TIWB mission. Upon selection, an Individual Contract (IC) or Reimbursable Loan Agreements (RLA) will then be awarded for the assignment. This will have a specific term of reference, including the time frame. NOTES: All applicants are required to follow the rules and regulations pertaining to serving official’s participation in programmes of multilateral organisations. Approval from the requisite authority in the Government will be required before a tax expert can undertake a TIWB programme. Once selected for the Roster, the experts have the responsibility of informing UNDP when their circumstances change (e.g. when he/she takes up a new role particularly a position in an audit firm which could create a potential conflict of interest). Institutional arrangement: The Consultants will be responsible for her/his own laptop. Payment modality: Payments to the Individual Contractors will be made following certification by the UNDP that the services contracted for have been performed satisfactorily and on time. Annexes (click on the hyperlink to access the documents): Annex 1 – Thematic Area – Tax Audits Form Annex 2 – Thematic Area – Tax and Crime Investigations Form Annex 3 – Thematic Area – Effective Use of Automatically Exchanged Information Form Annex 4 – Thematic Area – Tax Treaty Negotiations and Implementation Form Annex 5 – Thematic Area – Taxation and Natural Resource Contracts Form Annex 6 – Thematic Area – Taxation and Environment Form Annex 7 - UNDP P-11 Form for ICs Annex 8 - IC Contract Template Annex 9 – IC General Terms and Conditions Annex 10 – RLA Template NOTES: Qualified women candidates are strongly encouraged to apply. Any request for clarification must be sent by email to [email protected] The UNDP Central Procurement Unit will respond by email and will send written copies of the response, including an explanation of the query without identifying the source of inquiry, to all applicants.

OECD and Brazil's federal revenue authority invite taxpayer input on transfer pricing issues relating to the design of safe-harbour provisions and other comparability considerations

As part of the implementation phase of a joint transfer pricing project between the OECD and Brazil, the OECD Secretariat and Receita Federal do Brasil (RFB) have launched a survey to seek public input to inform the work related to the development of safe harbours as well as other simplification measures and measures that can contribute to enhanced tax certainty.

BACKGROUND

The OECD and RFB jointly launched the "Transfer Pricing in Brazil" project in February 2018 to review and analyse the differences in the Brazilian transfer pricing rules as compared to the OECD standard. On 18 December 2019, the findings of the project were presented to the public with the publication of a joint report, Transfer Pricing in Brazil: Towards Convergence with the OECD Standard 1. The report identifies two options for Brazil to converge with the OECD standard, while enhancing the positive attributes of its existing transfer pricing framework. Both options contemplate full adherence to the arm's length principle, which is at the core of the OECD standard, while seeking to preserve simplicity and certainty. In this regard, consideration will be given to incorporating targeted, carefully designed safe harbours in appropriate circumstances. Safe harbours, which constitute simplified approaches for determining or approximating the arm’s length price – can achieve important benefits in terms of simplicity and certainty, if properly designed (in line with the arm’s length principle) and applied in appropriate circumstances (under specified eligibility criteria). They also reduce tax compliance costs for taxpayers and contribute to more efficient tax administration and tax certainty. Other measures and practices can also contribute to tax certainty in situations where safe harbours may not be an appropriate tool. Such measures and practices may include advance pricing arrangements (APAs), which also may provide a framework for achieving tax certainty in more complex and higher risk transactions.

SURVEY DOCUMENT

The survey document – available in both English and Portuguese – contains an open invitation particularly to taxpayers with business interests in Brazil and businesses interested in investing in Brazil as well as other stakeholders to contribute to the ongoing OECD/RFB project by providing their specific experience or comments on elements relevant to the development of safe-harbour regimes and other measures contributing to tax certainty in Brazil. This input should help to understand the specific situations and needs of taxpayers, where issues may arise when performing comparability analysis and also where the design of safe harbours or other similar measures contributing towards tax certainty would be especially needed.

To structure the input, a survey was designed containing 17 questions related to:

• Identifying situations where specific safe-harbour regimes may be needed;
• Use of the available comparables data;
• Considerations for the use of advance pricing arrangements (APAs); and
• Other simplification measures.

The questions are preceded by an introductory note providing the background and context of the questions. The OECD guidance on safe harbours in Chapter IV of the OECD Transfer Pricing Guidelines, which represents the policy framework for the development of safe harbours, is included as an annex.

Interested stakeholders are invited to send their input no later than Friday, 18 September 2020, by e-mail to [email protected] and copied to [email protected].

Please note that this survey is strictly confidential; no individual or organisation-specific information will be disclosed. Results may only be made available in aggregated format.

Tax Policy Advisors - Transparency and Exchange of Information for Tax Purposes (Job Number: 13800)

Application Closing Date: 20-09-2020, 4:59:00 PM

The OECD is a global economic forum working with 37 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 Global Forum on Transparency and Exchange of Information for Tax Purposes (the Global Forum) has played a key role in the development and acceptance of international standards on transparency and effective exchange of information (EOI) for tax purposes and in monitoring progress in implementing these standards. It has played a critical role in the international community’s efforts over the past ten years to counter international tax avoidance and evasion. The Global Forum currently includes over 160 members on an equal footing, a list of whom can be found on the Global Forum website www.oecd.org/tax/transparency. 

The Global Forum Secretariat is based in the OECD’s Centre for Tax Policy and Administration (CTPA), which is the focal point for the OECD’s work on all taxation issues, both international and domestic. 

The Global Forum’s primary focus is to oversee the implementation of the standards. The main part of the Global Forum’s work is to prepare peer review reports which assess a jurisdictions’ legal framework for exchange of information as well its practices. The Global Forum peer review work includes monitoring and reviewing jurisdictions’ implementation of the new international standard on Automatic Exchange of Information (AEOI). This includes reviewing and preparing reports on member tax administrations’ Information Security Management (ISM) arrangements and their safeguarding of data exchanged under international EOI agreements to seek to ensure that these are aligned with internationally recognised information security standards. The Global Forum also provides capacity building services and technical assistance to member jurisdictions, particularly developing country tax administrations, to help them implement the standards in the area of ISM in order to participate and benefit from AEOI and the new environment of tax transparency and EOI.

The Global Forum is currently seeking several Tax Policy Advisors to contribute to the work set out above. As members of a team of experts, the successful candidates will be involved in a variety of activities including the preparation of peer review reports for EOIR, monitoring and reviewing the implementation of the AEOI standard and the provision of training and technical assistance to member jurisdictions to enable them to implement the standards and to benefit from them.

Availability and willingness to undertake international travel is required.

The vacancy is open to nationals of OECD member countries and jurisdictions of the Global Forum.

 

Main Responsibilities

 

Analysis and Drafting

• Conducting EOIR peer reviews, including preparing draft review reports, incorporating input and comments received and taking them through the Global Forum’s approval processes.
• Monitor the implementation of the standard in AEOI and conduct reviews of its implementation, both in relation to the legal frameworks being put in place and its effectiveness in practice.
• Prepare policy briefs, press releases, background papers, presentations and other documents related to the Global Forum’s work.

Technical and Implementation Support

• Provide technical assistance through seminars or workshops on both the legal and practical aspects of exchange of information standards.
• Prepare and deliver training and technical support to member jurisdictions and assist them in implementing the international standards.
• Advise members in finding the most resource-effective ways to implement the standards and establish a network of international information exchange instruments.

Meetings, Representation and Liaison

• Participate in and contribute to the preparation of meetings of the Global Forum and its subsidiary bodies and other related meetings.
• Establish and maintain contact with officials from member jurisdictions participating in the Global Forum’s work and meetings.
• Promote the work of the Global Forum externally through participation in conferences, seminars and contacts with civil society and non-governmental stakeholders.
• Liaise with other relevant international organisations.

 

Ideal Candidate profile 

Academic Background 

• An advanced university degree, or equivalent, in law or other relevant disciplines (e.g. economics) preferably with a specialisation in taxation and/or taxation policy. Knowledge of company law and/or financial law would be an asset. 

Professional Background

• A minimum of three, preferably five years’ experience in international tax law or administration or financial/corporate regulations, providing advice to governments on international tax policy or administration issues and/or experience as a tax examiner/adviser.
• Experience of complex tax projects involving different inter-organisational and/or inter-governmental stakeholder groups.
• Expertise in the legal and/or practical aspects of exchange of information for tax purposes and familiarity with OECD and Global Forum work.

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, Strategic networking and Team work.
• Please refer to the full list of 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 EUR 6 130 or EUR 7 563, plus allowances based on eligibility, exempt of French income tax. 

• Please note that the appointment may be made at a lower grade based on the qualifications and professional experience of the selected applicant.

The Platform for Collaboration on Tax invites public comments on the draft Toolkit on Tax Treaty Negotiations by 10 September

The Platform for Collaboration on Tax (PCT) – a joint initiative of the IMF, OECD, UN and World Bank Group – is seeking feedback from the public on a draft toolkit designed to help developing countries build capacity in tax treaty negotiations.

PCT's Draft Toolkit on Tax Treaty Negotiations is a joint effort to provide capacity-building support to developing countries on tax treaty negotiations, building on existing guidance, particularly from the UN Manual for the Negotiation of Bilateral Tax Treaties between Developed and Developing Countries (the "UN Manual"). The Toolkit describes the steps involved in tax treaty negotiations such as how to decide whether a comprehensive tax treaty is necessary, how to prepare for and conduct negotiations, and what follow-up measures to take after negotiations. Treaty negotiating teams, especially those who are new to the process, can also find practical tips on the conduct of negotiations and negotiation styles.

Additionally, the Toolkit collates links to publicly available resources that treaty negotiators will find useful, making them easily accessible for treaty teams. The design of the Toolkit allows regular updates and improvements based on the feedback from users and experienced negotiators.

The PCT Secretariat is now seeking comments on the discussion draft of the Toolkit by 10 September 2020 from interested stakeholders. Comments can be sent in two ways:

• All interested stakeholders: Please send your comments by e-mail to [email protected]
• Tax administrations and international or regional tax organisations can also provide their comments on the Knowledge Sharing Platform for Tax Administrations Web site (KSP-TA) by registering HERE

The PCT Secretariat aims to release the final toolkit in early 2021. French and Spanish versions of the discussion draft of the Toolkit will also follow. For more information on the public comment process, please visit the PCT's official website.

Georgia commits to implement international standard on automatic exchange of financial information by 2023

On 8 June 2020, the Honourable Ivane Matchavariani, Minister of Finance of Georgia, committed to implement the international standard on automatic exchange of financial account information by 2023. This powerful new tool will not only generate additional taxable revenues for Georgia by allowing it to identify cases of tax evasion but also drive changes in taxpayer behaviour.

The Honourable Ivane Matchavariani stated “As a member of Global Forum, Georgia stays committed to implementing the global standards on tax transparency and exchange of information for tax purposes and wishes to formally express its commitment to implement the Standard for Automatic Exchange of Financial Information in Tax Matters (the AEOI Standard). Our intention is to begin the first exchanges under the AEOI Standard in September 2023.”

The Global Forum welcomes Georgia’s commitment as it joins 112 other jurisdictions which have committed to AEOI.

The Global Forum Secretariat will continue to provide technical assistance support for Georgia as it moves to implement AEOI, including within the AEOI pilot project. The pilot project is a partnership between Georgia, Germany and the Global Forum Secretariat, to support the implementation of AEOI in Georgia.

» Read the 2019 AEOI implementation report

Oman deposits its instrument of ratification for the Multilateral BEPS Convention

Oman deposited its instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (Multilateral Convention or MLI) with the OECD’s Secretary-General, Angel Gurría, thus underlining its strong commitment to prevent the abuse of tax treaties and base erosion and profit shifting (BEPS) by multinational enterprises. For Oman, the MLI will enter into force on 1 November 2020.

With 94 jurisdictions currently covered by the MLI, today’s ratification by Oman now brings to 49 the number of jurisdictions which have ratified, accepted or approved it.

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

Texas A&M University School of Law has launched its online international tax risk management graduate curricula for industry professionals.

Apply now for courses that begin August 23: International Tax Risk Management, Data, and Analytics; International Tax & Tax Treaties (complete list here) 

 

Enhancing Reputational Risk Management for Tax Administrations

The OECD Forum on Tax Administration (FTA) today released a report on reputational risk management, highlighting its importance for protecting and enhancing tax compliance, including in the COVID-19 environment. The report, led by the Canada Revenue Agency and the FTA's Enterprise Risk Management Community of Interest, sets out the key considerations for developing and improving reputational risk management practices within tax administrations. It also introduces a reputational risk management maturity model, allowing administrations to self-assess their current capabilities and facilitating consideration of how and where improvements might be made. 

"Tax administrations more than ever have to ensure that they have the trust and respect of their taxpayer and stakeholder populations to achieve our objectives, something highlighted by the current crisis," said Bob Hamilton, Commissioner at the Canada Revenue Agency. "The joint work done with other FTA administrations on how to think about, measure and proactively address reputational risk will help to provide confidence and trust during the COVID-19 crisis and recovery, and could have long lasting positive impacts on the relationship between tax administrations and taxpayers."

"In the COVID-19 crisis tax administrations have been playing a central role in supporting taxpayers and the wider economy" said Pascal Saint-Amans, the Director of the OECD Centre for Tax Policy and Administration. "While this may have had positive impacts on the reputation of tax administrations and on compliance attitudes, that can easily change, and potentially dramatically, in such a difficult and fluid environment and therefore requires both careful consideration and active management".

This report highlights the importance of reputational risk management in modern tax administration and sets out some key considerations as to how to identify and manage reputational risks. It also contains a set of tools to assist tax administrations in developing their capacity in this area including a maturity model which allows administrations to self-assess their current capacity and to identify areas for possible further development. The report has been produced by the FTA Enterprise Risk Management Community of Interest (COI). It is the first in an intended series of reports by the FTA's Communities of Interest which bring together experts to exchange views and work collaboratively on major themes of modern tax administration.

This work was led within the Enterprise Risk Management COI by colleagues from the Canada Revenue Agency. As noted in the report, managing reputational risk is hugely important in helping to achieve the objectives of tax administration and wider government, something which is particularly true in times of crisis. The key principles driving reputational risk are trust in the administration and its staff and respect towards the organisation. When an administration consistently abides by its ethical duties, it establishes trust in the eyes of taxpayers and other stakeholders. When it fails to meet the standards expected of it, particularly with respect to the fair and equal treatment of taxpayers, public trust and credibility can be quickly eroded.

Download the report (PDF)

Texas A&M University School of Law has launched its online international tax risk management graduate curricula for industry professionals.

Apply now for courses that begin August 23: International Tax Risk Management, Data, and Analytics; International Tax & Tax Treaties (complete list here) 

Texas A&M University is a public university, ranked in the top 20 universities by the Wall Street Journal / Times Higher Education university rankings, and is ranked 1st among public universities for its superior education at an affordable cost (Fiske, 2018) and ranked 1st of Texas public universities for best value (Money, 2018).

OECD releases global tax reporting framework for digital platforms in the sharing and gig economy

Today, the OECD has released a new global tax reporting framework, the Model Rules for Reporting by Platform Operators with respect to Sellers in the Sharing and Gig Economy ("MRDP"). Under the MRDP, digital platforms are required to collect information on the income realised by those offering accommodation, transport and personal services through platforms and to report the information to tax authorities.

With the digitalisation of the economy transactions that take place on platforms may not always be reported to tax administrations, either by third parties or by the taxpayers themselves. The platform economy also means increased access to information for tax administrations, as it brings activities previously carried out in the informal cash economy onto digital platforms.

The MRDP are designed to help taxpayers in being compliant with their tax obligations, while ensuring a level-playing field with traditional businesses, in key sectors of the sharing and gig economy. They further seek to avoid a proliferation of different and unilateral reporting regimes, allow for the use of novel technology solutions and help create a sustainable environment supporting the growth of the digital economy.

"The approval of the MRDP by the G20/OECD Inclusive Framework on BEPS proves that multilateral solutions to address tax challenges in the digital economy are possible and that they are to the benefit of tax administrations, taxpayers and businesses alike", said Pascal Saint-Amans, Director of the OECD Centre for Tax Policy and Administration.

The MRDP are part of a wider strategy of the OECD to address the tax challenges arising from the digitalisation of the economy and are designed to serve as a basis for further policy developments in increasing tax transparency to create a stable environment for the growth of the digital economy. They were developed in response to calls for a global reporting framework for digital platforms, as reflected in the 2018 OECD report to the G20 on Tax Challenges Arising from Digitalisation, as well as in the 2019 report on The Sharing and Gig Economy: Effective Taxation of Platform Sellers by the OECD Forum on Tax Administration, which brings together over 50 of the world’s most advanced tax administrations.

To support the swift and coherent implementation of the MRDP, the OECD will now take forward work on the international legal and technical framework to facilitate the automatic exchange of the information collected under the MRDP.

Texas A&M University School of Law has launched its online international tax risk management graduate curricula for industry professionals.

Apply now for courses that begin August 23: International Tax Risk Management, Data, and Analytics; International Tax & Tax Treaties (complete list here) 

Texas A&M University is a public university, ranked in the top 20 universities by the Wall Street Journal / Times Higher Education university rankings, and is ranked 1st among public universities for its superior education at an affordable cost (Fiske, 2018) and ranked 1st of Texas public universities for best value (Money, 2018).

Platform for Collaboration on Tax releases toolkit to help developing countries tackle the complex issues around taxing offshore indirect transfers of assets

The Platform for Collaboration on Tax (PCT) released a Toolkit on the Taxation of Offshore Indirect Transfers (OIT) providing guidance on the design and implementation issues when one country seeks to tax gains on the sale of interests in an entity owning assets located in that country by an entity which is a tax resident in another country. This is the third Toolkit¹ published by the PCT to provide guidance on areas of international taxation of particular concern to developing countries.

This toolkit addresses a concern of particular significance to developing countries, mostly but not exclusively natural resource rich countries—primarily from the perspective of the country where the underlying assets are located. Taxation of the indirect transfer of assets such as mineral rights, and other assets generating location specific such as licensing rights for telecommunications, has been the subject of protracted public interest. This topic is a concern in many developing countries, magnified by the revenue challenges that governments around the world face as a consequence of the COVID-19 crisis.

The significance of this issue was recognised in the development of the OECD led Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (the "MLI"). The MLI includes a provision based upon the OECD and UN model tax conventions, for purposes of extending the reach of existing tax treaties to allocate rights to tax such indirect transfers to location countries, should treaty partners so choose.

The toolkit assesses the economic rationale for such an allocation of taxing rights on such transfers to the country where the underlying assets are located. The toolkit proposes that location countries may wish to tax offshore indirect transfers of at least those assets which are immovable—within the meaning of current UN and OECD model treaties—and perhaps additional assets that also generate location specific rents. If location countries do wish to extend taxing rights to such transfers the toolkit suggests two models for domestic legislation which such countries may adopt.

The first model seeks to tax the resident asset owner under the deemed disposal model- treating it as having realised the gain on the assets in question immediately before the transfer and reacquired the asset immediately after the transfer. The second model seeks to tax instead the non-resident seller of the asset. The toolkit also suggests a model definition of immovable property for the purposes of such domestic legislation and provides further guidance to support enforcement and collection.

This toolkit takes into account extensive comments received during two rounds of public consultation in 2017 and 2018 from numerous groups representing country authorities, civil society organisation and the private sector.

The launch of this toolkit will be complemented with a launch webinar in the coming weeks. French and Spanish versions of the toolkit will follow, as well as virtual learning opportunities based on the toolkit.

The PCT is a joint initiative of the International Monetary Fund (IMF), the Organisation for Economic Cooperation and Development (OECD), the United Nations (UN) and the World Bank Group (WBG). More information can be found on the PCT's official website.

¹ The PCT released a toolkit on Options for Low Income Countries' Effective and Efficient Use of Tax Incentives for Investment in 2015, and another for Addressing Difficulties in Accessing Comparables Data for Transfer Pricing Analyses in 2017. Others are in varying stages of development and public comment.

OECD issues recommendations on implications of the COVID-19 crisis on cross-border workers and other related cross-border matters

The COVID-19 pandemic has forced governments to take strict and in some cases unprecedented measures to protect their citizens, economies and societies, such as restricting or stopping travel and implementing strict quarantine requirements. In this difficult context, most countries are putting stimulus packages in place, including measures to support employment, for example, taking on the burden of unpaid salaries on behalf of companies suffering from the economic downturn resulting from the COVID-19 pandemic. As a result of these restrictions, many cross-border workers are unable to physically perform their duties in their country of employment. They may have to stay at home and telework, or may be laid off because of the exceptional economic circumstances.

This unusual situation is raising many tax issues, especially where there are cross-border elements in the equation; for example, cross-border workers, or individuals who are stranded in a country that is not their country of residence. These issues have an impact on the right to tax between countries, which is currently governed by international tax treaty rules that delineate taxing rights.

The exceptional circumstances of the COVID-19 crisis call for an exceptional level of coordination and co-operation between countries, notably on tax issues, to mitigate the potentially significant compliance and administrative costs for employees and employers. The OECD encourages countries to work together to alleviate the unplanned tax implications and potential new burdens arising due to effects of the COVID-19 crisis. 

At the request of concerned countries, the OECD Secretariat has issued guidance on these issues based on a careful analysis of the international tax treaty rules.

This guidance deals with concrete situations. Take these two examples:

• Mr. X, is stranded for a period in a country that is not his country of residence due to the travel restrictions and quarantine measures. The challenge here is to determine the place of residence of individuals for tax purposes. In this case, the OECD Secretariat’s general view is that, under the bilateral tax treaty between the two countries, Mr. X’s residence will not change due to such temporary dislocation. The OECD recommends countries of temporary residence to apply their domestic rules accordingly.
• Ms. F, who is a cross-border worker, is quarantined in her country of residence and temporarily out of work due to the COVID-19 crisis. Thanks to the stimulus package adopted in the country of her employer, she continues to receive her salary from her employer. The challenge in this case concerns the taxation of her salary received due to a stimulus package. In this case, the OECD Secretariat’s general view is that her income will continue to be taxed as it was prior to the COVID-19 crisis, that is in the country where she used to exercise her employment.

The guidance also deals with issues affecting the residence of companies for tax purposes, where their management is carried out in another country due to the travel and quarantine restrictions. It examines teleworking, for instance, and the implications for companies of having cross-border employees telework in their home country and therefore performing their duties there. In these situations, the OECD Secretariat’s general view is that these special circumstances should not affect the residence status of companies under the international tax treaty rules.

The OECD has announced it is urgently working on other concerns raised by businesses, taxpayers and tax administrations due to the COVID-19 crisis, on the taxation of cross-border workers teleworking in their home country and individuals affected by countries’ domestic residence rules triggered by the impacts of travel and quarantine restrictions. 

Public comments received on the 2020 Review of Country-by-Country Reporting (BEPS Action 13 Minimum Standard)

• Download comments (Zip file, 18mb - Please open from a computer)

Update 12/03/2020: Comments have been added/replaced in their respective folders within the ZIP file. Please consult the "Read me" file for a description of all updates.