News

BEPS

Last week, the Inclusive Framework on BEPS approved the latest results of the reviews of jurisdictions’ domestic laws which were carried out by the OECD Forum on Harmful Tax Practices (FHTP). The reviews covered preferential tax regimes and the substantial activities standard for “no or only nominal tax jurisdictions”. The FHTP reviewed the domestic laws of the 12 “no or only nominal tax jurisdictions” and considered 56 preferential tax regimes. The FHTP has reviewed 287 regimes since the start of the BEPS Project. Read more.

Jul 29, 2019
BEPS

The OECD is now gathering feedback for Stage 1 peer reviews on specific Mutual Agreement Procedure (MAP) related issues and invites taxpayers to submit input by 12 August 2019. The MAP peer review process is part of BEPS Action Plan 14 which was launched in December 2016 and aims to improve the tax treaty dispute resolution process. The MAP peer review process is conducted under two stages. The OECD is now gathering input for Stage 1 peer reviews of Andorra, Anguilla, Bahamas, Bermuda, British Virgin Islands, Cayman Islands, Faroe Islands, Macau (China), Morocco and Tunisia and invites taxpayers to submit input using the taxpayer input questionnaire. The completed questionnaire should be returned to fta.map@oecd.org by 12 August 2019.

Jul 22, 2019
BEPS

The OECD has updated its Matching Database for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the MLI). It now includes information on entry into effect dates and reference to synthesised texts, if available. The Matching Database makes projections on how the MLI modifies a specific tax treaty covered by the MLI by matching information from Signatories’ MLI positions. According to the OECD, this tool is a preliminary (beta) version that will be improved over time. The OECD welcomes comments and suggestions from the public on the development of improved versions of the MLI Matching Database.

Jun 24, 2019
Tax International

Find out about updates to Revenue guidance on restricted share schemes and Revenue powers, Easter payroll procedures in the UK and how Luxembourg becomes the 87th state to ratify the Multilateral BEPs Convention.            Ireland Revenue’s Tax and Duty Manual Revenue Information Powers now incorporates information previously available in Statement of Practice SP GEN-1-99 (Revenue Powers). Read more Revenue’s guidance ‘Share Schemes – Restricted Shares’ has been incorporated into the Share Schemes Manual - Chapter 8   UK Read HMRC’s communication on Easter payroll processes Check out the latest Talking Points schedule   International Luxembourg becomes the 87th state number to ratify the Multilateral BEPS Convention (MLI).  The MLI will enter into force for Luxembourg in August this year    

Apr 16, 2019
BEPS

The Netherlands and Georgia recently deposited instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) with the OECD.  The MLI will take effect for both states on 1st July this year.  The MLI facilitates the closing of gaps in existing international tax rules by transposing results from the OECD/G20 BEPS Project into bilateral tax treaties worldwide. The MLI modifies the application of thousands of bilateral tax treaties concluded to eliminate double taxation.  There are currently 87 states joined up to the MLI. 

Apr 01, 2019
BEPS

Australia will not progress plans to introduce interim digital taxes, but will instead wait to see the outcome of multilateral efforts coordinated by the OECD for taxing the digital economy according to Australia’s Treasurer Josh Frydenberg. Australia conducted a government consultation in October 2018 on the implications of an interim unilateral approach to dealing with the digital economy. Feedback from that consultation process along with international developments lead by the OECD culminated in a decision by the Australian government to focus on a multilateral process in place of putting a unilateral tax in place. The UK confirmed in its recent Spring Statement that its plans to unilaterally introduce a digital services tax will proceed from April 2020.  

Mar 25, 2019
Tax

Finland recently submitted its instrument of acceptance of the BEPS Multilateral Convention (MLI) which is due to take effect in June 2019.  A total of 87 states are currently committed to implementing the MLI.  The MLI aims to close the gaps in existing international tax rules by transposing results from the OECD/G20 BEPS Project into bilateral tax treaties worldwide. The MLI modifies the application of thousands of bilateral tax treaties concluded to eliminate double taxation. It also implements agreed minimum standards to counter treaty abuse and to improve dispute resolution mechanisms while providing flexibility to accommodate specific tax treaties. 

Mar 04, 2019
Tax International

The OECD recently published a Policy Note which steps up efforts to resolve the international challenge of taxing the digital economy along with a renewed effort to resolve outstanding BEPS issues.  The Policy Note was published following a meeting of the OECD/G20 Inclusive Framework group on 23/24 January which brought together 264 delegates from 95 member jurisdictions and 12 observer organisations.  According to the OECD, countries and jurisdictions participating in the Inclusive Framework will step up efforts toward reaching a global solution to the growing debate over how to best tax multinational enterprises in a rapidly digitalising economy. The first pillar of the Policy Note focuses on how existing rules that divide up the right to tax the income of multinational enterprises among jurisdictions, including traditional transfer-pricing rules and the arm’s length principle, could be modified to take into account the changes that digitalisation has brought to the world economy. According to the OECD, this will require a re-examination of the so-called ‘nexus’ rules which determine the connection a business has with a given jurisdiction and the rules that govern how much profit should be allocated to the business conducted there.   The Policy Note identified a second pillar which aims to resolve remaining BEPS issues. In the Policy Note, the OECD restates its intension to deliver a solution on the taxation of the digital economy by 2020 The Inclusive Framework will issue a consultation document that describes the two pillars in more detail, and a public consultation will be held on 13 and 14 March 2019 in Paris as part of the meeting of the Task Force on the Digital Economy. According to the OECD, further details on the consultation process, including how stakeholders can provide input and most effectively participate, along with the consultation document, will be published in the coming weeks.

Feb 04, 2019
Tax International

The Faroe Islands and Greenland became the latest jurisdictions to join the Inclusive Framework on BEPS which now numbers 127 jurisdictions. 

Jan 21, 2019