International Tax

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Multilateral-Instrument

BEPS Action 15 – Develop a Multilateral Instrument

Action 15 “Developing a multilateral instrument to modify bilateral treaties” aims to develop a multilateral instrument to enable jurisdictions to implement measures developed in the course of the work on BEPS and to amend bilateral tax treaties. The multilateral instrument should be open for signature by the end of 2016 by any interested jurisdiction. The […]

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dispute_mechanism

BEPS Action 14 – Dispute Resolution Mechanisms

Action 14 “Making dispute resolution mechanisms more effective” notes that countries have agreed on a minimum standard and a number of best practices in relation to dispute resolution. A group of 20 States, including Australia, France, Germany, Italy, Luxembourg, Spain, the United Kingdom and the United States, have also committed to provide for mandatory binding […]

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Transfer Pricing

BEPS Action 13 – Transfer Pricing Documentation

Action 13 “Transfer pricing documentation and Country-by-Country Report includes revised guidelines on transfer pricing documentation and Country-by-Country Reporting (CBCR). In particular, the Final Report on Action 13 proposes a three tiered documentation structure: A master file containing high-level information regarding global business operations; A local file specific to each country disclosing details of material related […]

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tax_planning

BEPS Action 12 – Disclosure of Aggressive Tax Planning

Action 12 “Mandatory disclosure rules” aims to require taxpayers to disclose their aggressive tax planning arrangements. This will be addressed through the development of recommendations regarding the design of mandatory disclosure rules for aggressive or abusive transactions, arrangements, or structures, taking into consideration the administrative costs for tax administrations and businesses and drawing on the […]

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Measuring_and_Monitoring_BEPS

BEPS Action 11 – Measuring and Monitoring BEPS

Action 11 “Measuring and monitoring BEPS” aims to establish methodologies to collect and analyse data on BEPS and the actions to address it. The OECD intends to do this by developing recommendations regarding indicators of the scale and economic impact of BEPS and ensure that tools are available to monitor and evaluate the effectiveness and […]

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transfer_pricing

BEPS Actions 8-10 – Align Transfer Pricing Outcomes with Value Creation

Actions 8-10, “Aligning Transfer Pricing Outcomes with Value Creation” includes new guidance on how to allocate transfer price risk, transfer price intangibles, hard-to-value intangibles (HTVI), commodities, low value-adding intra-group services and cost contribution arrangements. Specifically, the Final Report on Actions 8-10 sets out the aims of the Actions as follows: Action 8 – develop rules […]

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permanent_establishment

BEPS Action 7 – Artificially Avoiding PE Status

Action 7 “Preventing the artificial avoidance of permanent establishment status” contains agreed amendments to the definition of “permanent establishment” in Article 5 of the OECD Model Tax Convention, which is widely used as the basis for negotiating tax treaties. These changes address techniques used to inappropriately avoid the existence of a permanent establishment. The Final […]

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tax_treaties

BEPS Action 6 – Prevent Treaty Abuse

Action 6 “Preventing the granting of treaty benefits in inappropriate circumstances” recommends that countries include in their tax treaties an express statement that their common intention is to eliminate double taxation without creating opportunities for treaty shopping. The Final Report on Action 6 includes proposed changes to the OECD Model Tax Convention to set a […]

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BEPS Action 6 – Challenges for Existing Holding Structures?

The OECD’s final report on “BEPS Action 6: Preventing the Granting of Treaty Benefits in Appropriate Circumstances” identifies tax treaty abuse, in particular, tax treaty shopping as one of the most important sources of BEPS concerns.  This is where a taxpayer inappropriately uses a tax treaty (also known as a double tax agreement) to reduce […]

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tax_practices

BEPS Action 5 – Harmful Tax Practices

Action 5 “Countering harmful tax practices more effectively, taking into account transparency and substance” aims to identify and counter harmful tax practices, taking into account transparency and substance.  This Action aims to revamp the existing framework on harmful tax practices with a priority on improving transparency, including compulsory spontaneous exchange on rulings related to preferential […]

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