“OECD Forum on Tax Administration issues handbooks to address implementation and use of CbC reports”
Source: Deloitte Global Transfer Pricing Alert 2017-044, 18 October 2017
This is a useful Deloitte summary of two recent OECD handbooks –
Country-by-Country Reporting: Handbook on Effective Implementation and
Country-by- Country Reporting: Handbook on Effective Tax Risk Assessment.
These handbooks are meant to assist tax authorities to use the information received through the exchange of country-by- country information within their tax risk assessment framework.
The June 2017 discussion draft sets out high-level general principles for the attribution of profits to PEs in the circumstances addressed by Action 7 of the BEPS Action Plan.
It gives guidance on the following:
- PEs arising from article 5, paragraph 5 of the OECD model treaty, including examples of a commissionnaire structure for the sale of goods, an online advertising sales structure, and a procurement structure.
- PEs created as a result of the changes to article 5, paragraph 4, including an example on the attribution of profits to PEs arising from the anti-fragmentation rule included in new paragraph 4.1 of article 5.
Interested parties are reminded to send comments on the proposals in the June 2017 discussion draft by September 15, 2017.
(Further comments are not invited on the 2016 discussion draft and on the PE definitions agreed in Action 7 that were published in the 2015 Final Report.)
Source: OECD Press release 5 Just 2017
The latest Report from OECD Secretary-General Angel Gurría to G20 Leaders describes the continuing fight against tax avoidance and tax evasion as one of the major success stories of the G20, founded on enhanced international co-operation.
The report, released 5th July 2017, updates progress in key areas of OECD-G20 tax work, including movement towards automatic exchange of information between tax authorities and implementation of key measures to address tax avoidance by multinationals.
“Tax issues have been a key priority of the G20 since its inception, and 2017 is the year of implementation,” Mr Gurría said. “In the midst of the backlash against globalisation, we need to deliver on an agenda of inclusive growth. The work of the G20 and the OECD to repair and improve the international tax system so everyone pays their fair share remains one of the most important responses to these challenges, as well as one which is having a concrete impact.”
DRAFT REVISED GUIDANCE ON THE TRANSACTIONAL PROFIT SPLIT METHOD (TO REPLACE PART III SECTION C OF CHAPTER II OF THE 2010 TRANSFER PRICING GUIDELINES)
Source: OECD Discussion Draft, 22 June 2017. Deadline for responses – 15 September 2017
Public comments are invited on this discussion draft which deals with the clarification and strengthening of the guidance on the transactional profit split method, as set out in the BEPS Actions 8-10, 2015 Final Report.
This draft sets out the text of proposed revised guidance on the application of the transactional profit split method, together with a number of questions, listed below. Read the rest of this entry »