With a number of important recent and upcoming developments in the OECD's international tax work, we invite you to join the OECD's Centre for Tax Policy and Administration (CTPA) for the latest tax update. Topics included: - BEPS, including the latest results of the minimum standard peer reviews and implementation guidance. - Current public consultation on digital economy taxation. - Other recent developments: work of the Forum on Tax Administration, and on tax transparency.

1. OECD TAX TALKS
17 October 2017
16:00 – 17:00 (CEST)
CENTRE FOR TAX POLICY
AND ADMINISTRATION

2. Join the discussion
Ask questions and comment throughout the webcast
CTP.Contact@oecd.org
#OECDTaxTalks
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3. Topics
1. Introduction: G20 and Forum on Tax Administration
2. Digital economy: Request for input and next steps
3. Harmful tax practices: Peer review results
4. Tax treaties: Model Tax Convention, BEPS multilateral instrument
5. Tax certainty: Enhancing dispute resolution, and Country-by-Country
reporting
6. Recent and next developments: exchange of information (on
request, automatic) and Revenue Statistics in Africa
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4. INTRODUCTION

5. Update on the G20
• G20 Finance Ministers’ meeting on 12-14 October in
Washington DC
• Start of the automatic exchange of financial account
information in September with the Common Transmission
System
• Tax challenges in a digitalised economy
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6. 6
• 11th meeting of the OECD FTA in Oslo with heads of 48 tax administrations
• Key topics and orientation for future work:
‒ Implementation of AEOI, BEPS and actions to enhance tax certainty
‒ Improving compliance through work on the shadow economy, focus on
the effective use of CRS data
‒ Building the tax administration of the future through digital services and
delivery, supporting capacity building in developing countries
Forum on Tax Administration

7. 7
• Tax Administration 2017
• The Changing Tax Compliance Environment and the Role of Audit
• Shining light on the Shadow Economy: Opportunities and threats
• BEPS Action 13 CbC Reporting: Handbook on Effective Implementation
• BEPS Action 13 CbC Reporting: Handbook on Effective Tax Risk
Assessment
Reports released at the FTA meeting
More information:
www.oecd.org/tax/forum-on-tax-administration/
Forum on Tax AdministrationForum on Tax Administration

8. DIGITAL ECONOMY

9. 9
Background
• G20 Finance Ministers (March 17)
• TFDE to deliver interim report on implications for
taxation of digitalisation in April 2018
• Important input for the report: consultation with
business, civil society, academia
• Public consultation in two steps: request for written
comments, followed by meeting of stakeholders

10. 10
The consultation
• 22 Sept-13 Oct: request for written comments
• OECD to publish responses on website
• 1 November: Public consultation meeting
• University of California, Berkeley (US)
• Speakers and participants at the meeting will be selected from
among those who provided timely written comments on the
questions

11. 11
The consultation
• Request for written comments:
– Digitalisation, Business Models and Value Creation
– Challenges and Opportunities for Tax Systems
– Effects of the implementation of the BEPS package
– Tax options to address the broader direct tax policy
challenges

12. 12
Options for tax challenges
• Significant economic presence
• Withholding tax on certain types of digital transactions
• Digital equalisation levy
• Other proposed measures (announced or introduced) by
various countries to address the direct tax challenges of
highly digitalised business models (e.g., turnover taxes)

13. 13
Next steps
• Submissions posted online shortly
• 1 November: meeting in Berkeley, webcasted
• April 2018: Report presented to the G20 Finance
Ministers (IMF/WB Spring meeting in Washington)

14. HARMFUL TAX PRACTICES:
PREFERENTIAL TAX REGIMES

15. 15
Preferential Tax Regimes: Recap and Status
• 2 parts to Action 5 minimum standard
1. Preferential tax regimes
2. Mandatory spontaneous exchange of information on certain
tax rulings
• 2017 Progress Report: Consolidated results of 164
preferential tax regimes reviewed since 2015 BEPS Action
5 Report

16. 16
Preferential Tax Regimes: Results
2 4
12
1
80
34
4
17
1 9
Results as at 4 October 2017
Harmful (2)
Potentially harmful (4)
Abolished (12)
Amended (1)
In the process of being eliminated / amended (80)
Not harmful (34)
Potentially harmful but not actually harmful (4)
Out of scope (17)
Disadvantaged area (1)
Under review (9)

17. 17
Preferential tax regimes: Highlights
• 164 regimes reviewed
– 99 regimes require action
– For 93 of these 99 regimes, required changes already completed or initiated by Inclusive
Framework members
– 56 regimes do not pose a BEPS risk
– 9 regimes still under review
• IP regimes
– Many IP regimes now comply with the “nexus approach”
– Almost all new IF members’ IP regimes already abolished or being amended (only 1 regime
with special circumstances which is under review)
– Only one IP regime across whole membership of Inclusive Framework has remained
unreformed and been found “actually harmful”

18. 18
Preferential tax regimes: Where does this take us
• Substantial activities principle agreed and implemented
around the world for both IP and non-IP regimes
• Further work on monitoring, capacity building and support
• Update 2018 / 2019

19. TAX TREATIES

20. Model Tax Convention
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• 2017 Update of the Model Tax Convention will soon be
submitted for approval to the OECD Council.
• Once approved, the 2017 Model should be available
(electronically) before the end of 2017. Paperback copies
should be available early 2018.
• Includes all of the treaty-related BEPS measures, both the
Model and the Commentary.
• Includes other Model changes on international traffic
• Also include several changes to the Commentary (e.g.
Permanent Establishment definition and tiebreaker rule).

21. 1. Signatories 2. Future signatories
1,136 Matched
Agreements
71
• As more jurisdictions sign up, the
number of matches will go up
• Currently 1,126 waiting
agreements (treaties listed with
non-MLI signatories)
Jurisdictions covered
Update on the Signatures of the Multilateral Instrument (MLI)
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22. BEPS Multilateral Instrument
Matching Results – Provisional (dynamic) MLI Positions
Tax Treaties that will
be updated
Article 6 New Preamble > 1,100
Article 7 Principal Purpose Test (PPT) > 1,100
PPT + Simplified LOB > 40
Articles 12,
13 and 14
Permanent Establishment
(new measures)
> 300
Article 16 Mutual Agreement Procedure > 1,100
Part VI Arbitration > 160
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23. Entry into force of the MLI
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• Ratification by 5 signatories required
• Entry into force for each other signatory
• First ratification
1 2 3 4 5
MLI in force
Austria

24. TAX CERTAINTY:
DISPUTE PREVENTION AND RESOLUTION

25. Domestic and multilateral
cooperative compliance
programmes – ICAP
APA
Filing of tax return
Co-ordinated audits
(joint, simultaneous,
abroad)
MAP
Arbitration
Tax certainty
Disputeprevention
Dispute
resolution
Risk assessment / CbC
Global awareness training for
international tax examiners
Domestic audits
Taxpayer
Context and related work on dispute prevention and dispute resolution
FTAwork

26. Tax certainty:
International Compliance Assurance Programme
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• A multilateral risk assessment and assurance
process for “not high risk” MNE groups
• ICAP will be a voluntary programme using CbC
Reports and other information to facilitate open
and co-operative multilateral engagements
between MNE groups and tax authorities
• Focuses on transfer pricing, permanent
establishment and other specific international
tax issues
• Provides certainty to MNE groups and
assurance to tax authorities
MNE
compliance
frameworks
BEPS Action
14
Benefit to
low risk
MNEs
International
collaboration
forums
BEPS Action
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27. ICAP: Benefits to MNE Groups and tax authorities
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Fully informed use of CbCR information
• MNE groups will talk participating tax
authorities through their CbC Report
Fewer disputes enter into MAP
• Tax administrations will have a better
understanding of relevant tax issues
• Differing positions can identified and
discussed earlier
Faster, clearer route to tax certainty
• Managed process with clear timelines
• MNE groups benefit from fewer or more
targeted interventions
• Tax administrations gain assurance that
risks areas are identified
Efficient use of resources
• MNE groups engage simultaneously with
multiple tax administrations
• Co-ordinated follow-up via lead tax
administration

28. ICAP: Overview of the process
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• MNE groups admitted into ICAP and participating tax authorities identified
• MNE group provides documentation package and kick-off meeting with all
participating tax authorities
• Two-part risk assessment stage (initial and in-depth, if required): tax authorities work
collaboratively and MNE group is kept informed via lead tax administration
• Follow-up meeting with MNE group to discuss outcomes of risk assessment
• If a tax administration agrees that an issue covered by ICAP poses no or low risk, an
assurance letter will be issued
Timeline will vary, but in most cases the period from the initial meeting to the
issuance of assurance letters should be no more than 12 months

29. ICAP: Pilot programme
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• ICAP has been developed through workshops involving 11 tax authorities
• Programme will commence in January 2018, with a pilot including Australia,
Canada, Italy, the Netherlands, Spain, the UK and the US
• MNE groups headquartered in the participating jurisdictions have been identified
and invited to participate in the pilot
• Other jurisdictions will participate in the pilot as observers to the process but will
not obtain information on the participating MNE groups
• Outcomes will be analysed and used to revise the programme, if required, with a
view to a wider roll-out

30. BEPS Action 14: Progress peer review processBatch1
6 jurisdictions
Approved on 4
September
Published on
26 September
Batch2
7 jurisdictions
Approved on
13 October
To be
published
later this year
Batch3
8 jurisdictions
First draft sent
to the
assessed
jurisdictions
and peers on 1
September
In progress
Batch4
8 jurisdictions
To be
launched in
December
Taxpayer input
requested in
November
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31. Peer review – Main findings
Jurisdictions in the first batch
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• Roll-back of bilateral APAs is
available
• Access to MAP is granted in eligible
cases
• MAP Guidance is generally clear and
available
• The competent authorities have
adequate resources, and take a
pragmatic and principled approach
• MAP agreements are implemented
on time
• On average, 25% of the tax treaties
need to be amended (some will be
modified by the MLI)
• Some improvements in MAP
guidance are necessary for some
jurisdictions
• Resolution of cases within 24
months on average is a challenge for
some jurisdictions, especially for
transfer pricing cases

32. 2016 MAP statistics
32
First statistics following the new reporting framework
• Common definition of MAP case
• Common counting system
• Common definition of start date, end date and of outcomes
• Reporting on jurisdiction by jurisdiction basis for post 2015 cases
• For the first time matching statistics
Publication November – superseding former statistics
Increase from 40 to 85 jurisdictions

33. COUNTRY-BY-COUNTRY REPORTING

34. Country-by-Country Reporting:
Status of implementation
34
• CbC Reporting intended to apply to fiscal
years commencing from 1/1/2016
• Latest deadline for filing: 31/12/2017
• Deadline for exchange: 30/6/2018
• In addition to CbC Reporting, around 40
jurisdictions are implementing a
requirement for a master file and local file
• 1000+ exchange relationships created
• 65 signatories to CbCR MCAA
• US signed 27 bilateral QCAAs, with more
under negotiation
• 55+ jurisdictions have implemented an
obligation for UPEs to file CbC Reports

35. • Guidance on interpretative issues most
recently updated in September and now covers
16 key questions
• Detailed guidance on “appropriate use” of CbC
Reports in risk assessment also issued in
September
• Two handbooks prepared by FTA and released
at Plenary on effective implementation and
effective risk assessment to support IF
countries in obtaining and using CbC Reports
Country-by-Country Reporting:
Recent guidance and handbooks
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36. 2017-18
Review covers:
•Domestic legal
framework
•Aspects of the
EoI network
•Aspects of
confidentiality and
appropriate use
2018-19
Review covers:
•EoI framework
•Feedback on first
exchanges of CbC
Reports
•Confidentiality and
appropriate use
2019-20
Review covers:
•All areas
Country-by-Country Reporting
Peer review
First phase of peer review
is on track for completion
in March 2018
2020
Review of
minimum
standard
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37. • Ensure exchange relationships are in place to enable the automatic
exchange of 2016 CbC Reports, following the agreed timeline
• Work with jurisdictions to address a transitional issue where QCAAs are
not currently in place, to avoid inadvertent local filing
• Support developing and emerging jurisdictions in implementing and
operating CbC Reporting
• Support all tax authorities in the effective and appropriate use of CbC
Reports for tax risk assessment
Country-by-Country Reporting:
Next steps
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38. RECENT DEVELOPMENTS
& WHAT’S NEXT

39. 39
Automatic exchange of information (AEOI)
• Key milestone: 49 jurisdictions started their
first automatic exchanges on 30 September 2017
• Jurisdictions have activated their exchange relationships under the CRS
Multilateral Competent Authority Agreement
• 53 further jurisdictions are committed to start in September 2018
• The Common Transmission System offers a secure exchange platform
• Preparation of the AEOI peer review process to start in 2020
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40. 40
Exchange of information on request (EOIR)
• First reports in the second round EOIR reviews (2016-2020) released in
August
• Enhanced process with new focus on the availability of beneficial
ownership information and its access by tax authorities.
– 3 “compliant”: Ireland, Mauritius and Norway
– 6 “largely compliant”: Australia, Bermuda, Canada, Cayman Islands,
Germany and Qatar
– 1 “partially compliant”: Jamaica
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41. 41
Revenue Statistics in Africa
• Just released on 12 October
• 16 participating countries representing
34% of Africa’s population and 34% of its GDP
• Average tax-to-GDP ratio: 19.1% (2015 data),
lower than the Latin America and the Caribbean
and the OECD average (22.8% and 34.3%)
• Main source of total tax revenues: taxes on goods
and services (57.2% on average) and particularly
VAT (31.5%)

42. 42
Next steps
• 20-21 October: APEC Finance Ministers’ meeting on 20-21 October
in Viet Nam
• 1 November: Public consultation on the tax challenges of the digital
economy in San Francisco
• 7-8 November: 5th OECD Forum on Tax and Crime in the UK
• 15-17 November: Global Forum plenary meeting in Cameroon

43. Contact
CTP.Contact@oecd.org
#OECDTaxTalks
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