The OECD today released peer reviews assessing whether 44 countries have met their commitments to disclose information to other countries about the private tax rulings they grant to multinational firms.
The commitments, made as a part of 2015 OECD/G20 base erosion profit shifting (BEPS) plan agreements between nations, are designed stop counties from facilitating tax avoidance by multinationals through granting the companies private tax rulings, including advance pricing agreements (APAs).
Over 100 countries that make up the inclusive framework on BEPS judged the progress in 2016 of 44 countries, which include all OECD and G20 countries, in meeting the agreed-to standards.
The review revealed a wide range of compliance among the countries assessed.
While 16 countries were judged as having adhered to the BEPS standards, there were problems with the remaining 28 countries’s compliance, ranging from temporary delays in exchanging the required information to no compliance at all. The report outlined suggested steps to remedy each countries’ breaches.
The OECD said that some countries that did not exchange data on time have already remedied the problem.
The report also said that more than 10,000 tax rulings in the scope of the rules had been issued by the jurisdictions under review and almost 6,500 exchanges of information took place by December 31, 2016.
The next annual peer review will cover all members of the inclusive framework on BEPS, except for the developing countries that requested a deferral of their review to 2019.
Be the first to comment