The OECD today released stage 2 peer review reports that assess compliance with global minimum standards on cross-border tax dispute resolution in eight countries: the Czech Republic, Denmark, Finland, Korea, Norway, Poland, Singapore, and Spain.
The peer review was conducted by the “Inclusive Framework on BEPS,” now comprised of almost 140 countries. These countries have pledged to adhere to minimum standards developed in 2015 as a result of the OECD/G20 base erosion profit shifting (BEPS) plan. The countries also agreed to be peer-reviewed for their compliance.
One such minimum standard, in BEPS Action 14, is a commitment by countries to ensure that they resolve tax treaty-related disputes in a timely, effective, and efficient manner.
This is the second peer review for the eight countries. It assesses whether the countries made progress adhering to the cross-border tax dispute resolution standards since they were last assessed.
It takes into account any developments from August 1, 2017, to February 28, 2019, and tax treaty mutual agreement procedure (MAP) statistics from 2016, 2017, and 2018.
According to the OECD, the reports reflect “positive change” in all eight countries.
The OECD notes that Denmark, Finland, Korea, Norway, Singapore, and Spain decreased the amount of time needed to close MAP cases since they were last assessed.
It also notes that Denmark, Finland, Korea, Norway, and Singapore have issued or updated their MAP guidance since the last report.
Moreover, all eight have now signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI), the OECD noted.
The OECD also pointed out since the last report, that Singapore has introduced legislative changes to ensure that all MAP agreements can be implemented notwithstanding domestic time limits.
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