Peer review reports assessing the cross-border tax dispute resolution process in Australia, Ireland, Israel, Japan, Malta, Mexico, New Zealand and Portugal prepared by the “Inclusive Framework on BEPS,” a coalition of over 100 countries, were released today by the OECD.
The framework is assessing how efficiently countries are resolving cross-border tax disputes involving multinational taxpayers to encourage countries to improve their processes.
One outcome of the 2015 OECD/G20 base erosion profit shifting (BEPS) plan was a commitment among countries to resolve tax treaty-related disputes in a timely, effective, and efficient manner.
The OECD said that the reports published today contain over 130 targeted recommendations to the eight nations assessed. These recommendations include topics such as taxpayers’ ability to access the mutual agreement procedure (MAP) provided for in bilateral tax treaties, whether the countries are successful in resolving MAP cases, and whether MAP agreements are implemented.
The eight countries will be assessed in stage 2 of the peer review process one year from the date of the adoption of the stage 1 report to see if they implement the reccomendations.
The inclusive framework intends to launch assessments of 60 countries through 2019.
Next up for stage one review will be Estonia, Greece, Hungary, Iceland, Romania, Slovak Republic, Slovenia, and Turkey.
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