G20 leaders have endorsed the global common standard for automatic exchange of tax information and approve of progress made on the G20/OECD base erosion and profit shifting (BEPS) action plan, according to a communiqué released November 16, following a summit in Brisbane, Australia.
The leaders said they are committed to finalizing the BEPS action plan in 2015 and that they welcome progress on BEPS issues related to patent boxes, likely referring to the UK and Germany’s recent announcement of joint a compromise proposal in this area.
The deepening engagement of developing countries in the BEPS project was also cited as an area of progress by the leaders.
The leaders said they welcomed a report, submitted by the OECD, IMF, UN, and World Bank Group, which sets out how these groups plan to set up a structured dialogue with and between developing countries on BEPS issues. In addition to discussing the G20/OECD BEPS action plan, the groups will facilitate discussion on BEPS issues of particular concern to developing nations, such as tax incentives designed to attract investment and the lack of comparable data for transfer pricing analysis.
The leaders also committed to improving transparency of beneficial ownership, releasing a set of principles designed to prevent the the misuse of entities for illicit purposes such as corruption, tax evasion, and money laundering. The paper, entitled “G20 High-Level Principles on Beneficial Ownership Transparency,” contains 10 commitments, including a commitment to ensure that beneficial ownership information is accessible to tax authorities and can be exchanged with relevant international counterparts in a timely and effective manner.
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