BEPS

While BEPS Action 14 requires jurisdictions to resolve mutual agreement procedure ("MAP") cases within an average timeframe of 24 months, statistics from the OECD show that transfer pricing cases took on average 30 months to resolve across the 85 participating jurisdictions. Transfer pricing cases commenced before 1 January 2016 took on average 35 months to resolve in Ireland; while cases started after 1 January 2016 took on average 12.7 months. The 2017 MAP statistics available for 85 jurisdictions contain detailed information on each jurisdiction as well as aggregated global information.  

Oct 15, 2018
Tax

Over 100 jurisdictions have now concluded negotiations on the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting.  A number of jurisdictions have also expressed their intention to sign the MLI as soon as possible and other jurisdictions are also actively working towards signature according to the OECD.

Oct 01, 2018
BEPS

The OECD recently released additional interpretative guidance which includes questions and answers on the treatment of dividends received and the number of employees to be reported in cases where an MNE uses proportional consolidation in preparing its consolidated financial statements, which apply prospectively. The guidance aims to assist tax administrations and MNE Groups alike on the implementation of Country-by-Country Reporting (BEPS Action 13).

Sep 17, 2018
BEPS

Israel and Lithuania recently deposited their instruments of ratification for the Multilateral BEPS Convention which will enter into force for each state on 1 January 2019.  To date 83 states have signed the Convention to Implement Tax Treaty related measures to prevent BEPs.  

Sep 17, 2018
BEPS

The OECD has published new transfer pricing country profiles for Costa Rica, Greece, Republic of Korea, Panama, Seychelles, South Africa and Turkey. The country profiles focus on domestic legislation on key transfer pricing principles, administrative approaches to avoiding and resolving disputes and other implementation measures. The OECD continues to publish and update the transfer pricing country profiles for OECD countries as well as interested members of the Inclusive Framework on BEPS. There reports reflect the current state of each country legislation and practice regarding the application of the arm’s length principle and other key transfer pricing aspects. The information was provided by countries themselves in response to a questionnaire in order to achieve the highest degree of accuracy.

Sep 10, 2018
BEPS

A discussion draft on financial transactions dealing with follow-up work to Actions 8-10 ("Assure that transfer pricing outcomes are in line with value creation") of the BEPS Action Plan was published by the OECD recently. The 2015 report on BEPS Actions 8-10 mandated follow-up work on the transfer pricing aspects of financial transactions.  The discussion draft aims to clarify the application of the principles included in the 2017 edition of the OECD Transfer Pricing Guidelines. The draft also addresses specific issues related to the pricing of financial transactions such as treasury function, intra-group loans, cash pooling, hedging, guarantees and captive insurance. Interested parties are invited to send their comments on this discussion draft, and to respond to the specific questions included in the boxes, by 7 September 2018 by e-mail to TransferPricing@oecd.org.

Jul 09, 2018