BEPS: CbC Reporting Implementation Expected in 2016; Exchange of Information to Start in 2017By Robert Robillard - 6 February 2015
This blogpost originally appeared on rbrt.ca.
From the OECD website:
“First steps towards implementation of OECD/G20 efforts against tax avoidance by multinationals
06/02/2015 – The OECD will present the latest developments in the OECD/G20 project to combat base erosion and profit shifting (BEPS) by multinational enterprises during a G20 Finance Ministers meeting on 9-10 February in Istanbul, Turkey.
OECD and G20 countries have agreed three key elements that will enable implementation of the BEPS Project:
• a mandate to launch negotiations on a multilateral instrument to streamline implementation of tax treaty-related BEPS measures;
• an implementation package for country-by-country reporting in 2016 and a related government-to-government exchange mechanism to start in 2017;
• criteria to assess whether preferential treatment regimes for intellectual property (patent boxes) are harmful or not.
“These are important steps forward, which demonstrate that progress is being made toward a fairer international tax system,” OECD Secretary-General Angel Gurría said. “These decisions signal the unwavering commitment of the international community to put an end to base erosion and profit shifting, in line with the ambitious timeline endorsed by G20 leaders. […]”
CbC reporting will soon be a reality…
The initiative on patent boxes is somewhat entertaining, to say the least. As BEPS chug along, Italy, UK and Ireland, to name a few, have recently announced their own preferential treatment regime for intellectual property.
But of course, believers will have us think that the multilateral instrument will help streamline implementation of tax treaty-related BEPS measures…
We shall see what we shall see…
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