The OECD today announced that Montserrat has joined the “Inclusive Framework on BEPS,” which is a group of countries that have pledged to implement measures aimed at preventing tax avoidance and improve tax dispute resolution.
These tax measures were designed by OECD and G20 countries, with input by some other countries, in the 2015 base erosion profit shifting (BEPS) project.
Montserrat is the 102nd jurisdiction to join the inclusive framework.
The commitment means that Montserrat has agreed to adopt BEPS “minimum standards” on tax treaty shopping, implement country-by-country reporting for transfer pricing, limit benefits of any intellectual property or other preferential tax regimes, and fully implement the mutual agreement procedure in its tax treaties. Montserrat must also pay a fee to participate.
In return, Montserrat will be permitted to work alongside OECD and G20 countries on an equal footing to ensure widespread adoption of the BEPS minimum standards which will subject to a peer review process.
Montserrat will also be permitted to participate in some remaining BEPS project international tax standard setting work; participate in ongoing data gathering on the tax challenges of the digital economy; and work on measuring the impact of BEPS.
