OECD Tax Talks CENTRE FOR TAX POLICY AND ADMINISTRATION

16 June 2016

2:00pm – 3:00pm (CEST)

Ask questions and comment throughout the webcast

2

Join the discussion

Via email CTP.Contact@oecd.org

Via Twitter using #OECDTaxTalks

Update on international tax agenda Presented by Pascal Saint-Amans, Director of the Centre for Tax Policy and Administration

BEPS package Presented by Achim Pross, Head of International Co-operation and Tax Administration

Domestic resource mobilisation & collaboration of international organisations Presented by Ben Dickinson, Head of Tax and Development Programme

3

Today’s topics and speakers

Update on the BEPS Project

Tax transparency

Forum on Tax Administration

G20 Tax Policy Symposium

4

UPDATE ON THE

INTERNATIONAL TAX

AGENDA

• Actions 8-10 implemented (incl. update of the Transfer Pricing Guidelines, 23 May 2016)

• Countries have started implementation

– For example on Country-by-Country Reporting, Hybrid Mismatches and Preferential regimes

• The EU action: mandatory exchange of rulings; Country-by-Country Reporting; and the draft Anti-Tax Avoidance Directive

• The Multilateral Instrument on BEPS tax treaty-related measures is well underway:

– 96 countries are participating in its negotiation, covering more than 2000 bilateral treaties

– 31 May 2016, Discussion draft released

– 7 July 2016, Public consultation to be held

5

Implementation of the BEPS Project

What is the inclusive framework?

• Opening of the Committee on Fiscal Affairs (CFA) to

interested and committed countries and jurisdictions

• Members participate on an equal footing in the decision-

making body (CFA) and the technical working groups

6

Implementation of the BEPS Project contd.

6

• The inclusive framework: – standard-setting

– review and monitor the implementation of the BEPS package

– support implementation • 8 toolkits are being developed

• Further guidance on CBCR implementation

• First meeting in Kyoto: 30 June – 1 July

7

Implementation of the BEPS Project contd.

• Latest countries to commit to implementing automatic exchange of

information (CRS): Bahrain, Lebanon, Nauru, Panama and Vanuatu

– Now 101 countries and jurisdictions committed for 2017 or 2018

• Multilateral Competent Authorities Agreement on Automatic Exchange of

Financial Account Information:

– 82 jurisdictions have signed

– Russian Federation and Israel are the most recent signatories

8

Tax transparency

• New Global Forum members: Lebanon and Paraguay

– Now 134 members

• Multilateral Convention on Mutual Administrative Assistance in Tax Matters:

– 96 Countries and Jurisdictions participate

– Jamaica and Uruguay are the most recent signatories

– A further 4 countries will sign soon, with an additional 6 countries

recently expressing their interest to join.

9

Tax transparency contd.

• New G20 mandates, April 2016:

– The OECD to establish objective

criteria by July 2016 to identify non-cooperative

jurisdictions with respect to tax transparency

– The Global Forum and the Financial Action Task Force to

make initial proposals by October 2016 on ways to

improve the implementation of international standards on

transparency

Increasing focus on beneficial ownership information

10

Tax transparency contd.

• 44 tax commissioners met in Beijing, China, in May

2016

• JITSIC collaboration to tackle Panama Papers

• Common Transmission System for tax authorities to

exchange information

11

Forum on Tax Administration

• 23 July 2016

• Ministerial-level

• Exploring tax policy’s role in

– Achieving innovation-driven and inclusive growth

– Increasing tax certainty to promote trade and investment in a world where value creation is changing

12

G20 Tax Policy Symposium

THE BEPS PACKAGE

Review and monitoring

Country progress and guidance on implementation

13

• What is BEPS peer review?

– Peer Review of jurisdictions to assess their

compliance with the 4 BEPS minimum standards

– Terms of reference and assessment

methodologies for reviews to be defined for each

minimum standard

– Public reporting of outcomes

14

BEPS Actions: Peer review

• Gathering data on the implementation of the other elements of the BEPS package

• Including on the impact of BEPS and measures to counter-BEPS (Action 11)

• Continuation of Task Force on the Digital Economy (Action 1)

15

BEPS Actions: Monitoring

Overview BEPS Actions

16

• Multilateral Competent Authorities Agreement on

Country-by-Country Reporting signed by 39

jurisdictions

• Mechanism for exchanging CbC

Reports (through the Common

Transmission System)

17

Focus on: Action 13

48 jurisdictions have

either implemented or

intend to implement

legislation

• 20 countries

• >90% MAP cases covered

Peer review of the Minimum Standard • Development of Terms of Reference well advanced

• Reviews expected to begin in 2016

Supplementary commitment for mandatory binding MAP

arbitration

Focus on: Action 14

DOMESTIC RESOURCE MOBILISATION

& COLLABORATION OF

INTERNATIONAL ORGANISATIONS

19

• Platform for Collaboration on Tax

– Concept Note, 19 April 2016

– Report for G20 Finance Ministers in July with

recommendations on effective implementation

of technical assistance programs, and funding

for tax projects.

20

Domestic resource mobilisation

21

Platform for Collaboration on Tax:

8 Toolkits 1. Report on Tax Incentives - delivered

2. Toolkit on Transfer Pricing Comparability

Including supplementary work on mineral pricing

3. Report on Indirect transfers of Assets

4. Toolkit on Transfer Pricing Documentation

5. Toolkit on Tax Treaty Negotiations

6. Toolkit on Base Eroding Payments

7. Toolkit on Supply Chain Management

8. Toolkit on BEPS risk assessment

WHAT’S NEXT?

22

• Kyoto meeting of inclusive framework

• July 2016: More OECD Tax Talks

• 23 July 2016: G20 Tax Policy Symposium

23

What’s next?

31 May 2016 Discussion draft Action 15 Multilateral Instrument

7 July 2016 Public consultation Action 15 Multilateral Instrument

6 July 2016 Discussion draft Action 2 Group ratio rule

18 July 2016 Discussion draft Action 4 Interest (banking and insurance sectors)

Wk 8 Aug Discussion draft Action 2 Branch mismatch arrangements

Under preparation: Discussion drafts on Actions 7, 8-10: Profit split method and profit

attribution