Bermuda, Kazakhstan, and Côte d’Ivoire have joined the “Inclusive Framework on BEPS,” to combat multinational enterprise tax avoidance and to better resolve cross-border tax disputes.
By joining the framework, the countries have pledged to adopt and promote the implementation of “minimum standards” designed by OECD and G20 countries in the base erosion profit shifting (BEPS) project.
These standards require the countries to add provisions to their tax treaties to prevent tax treaty shopping, implement country-by-country reporting for transfer pricing, limit the benefits of intellectual property or other preferential tax regimes, and fully implement the mutual agreement procedure for resolving cross-border tax disputes in tax treaties.
In return, Bermuda, Kazakhstan, and Côte d’Ivoire will be permitted to work alongside OECD, G20, and other countries to ensure widespread adoption of the BEPS minimum standards through a peer review process; participate in some remaining BEPS project international tax standard setting work; participate in ongoing data gathering work involving the tax challenges of the digital economy; and work on measuring the impact of BEPS.
The framework is being coordinated by the OECD with the G20’s endorsement.
Membership in the framework now stands at 94 countries. So far, 47 non-OECD/G20 members have joined.