Handbook - Developing Partnerships with Non-OECD Economies - Section 1.3

Objective

Focus

Standards/

Guidelines

Benefits

Tax Treaties

Develop with the partners the skills for the negotiation and application of bilateral tax treaties

Negotiation of tax treaties, detailed examination of tax treaty provisions and issues in their implementation

OECD Model Tax Convention on Income and on Capital

Expanding tax treaty networks,  Improved capacity in negotiation and treaty application

Transfer Pricing Guidelines

Encourage the adoption and effective implementation of OECD Transfer Pricing Guidelines

General principles, implementation and administrative issues in the OECD approach to transfer pricing problems

OECD Transfer Pricing Guidelines

Transparent, effective and efficient administration of transfer pricing problems and disputes

Exchange of Information

Examination of the legal basis and operational aspects of exchange of taxpayer information between countries

Provide practical guidance on how to improve effective exchange of information and provide an insight into the use of new technologies developed for this purpose

OECD Exchange of Information Instruments and related guidelines

Improvement of international co-operation to combat tax avoidance and evasion

Tax incentives in corporate and personal income taxes and consumption taxes, are examined with practical examples taken from OECD countries and Non-OECD Economies

Assist countries to review these tax incentives so as to minimise potential economic distortions

Tax Policy Workshop

Examine policy considerations relevant to senior tax policy makers

A range of tax policy issues depending on areas of interests: linkages between taxation and domestic and foreign direct investments, stock options, environmental tax reforms, taxation and savings, taxation and employment

Develop a balanced approach to tax policies taking into considerations policy goals such as efficiency, equity, neutrality and effectiveness

International Tax Avoidance and Evasion

Examine tax avoidance and evasion problems in international transactions and possible responses

Examine common structures used to avoid and evade taxes and examine strategies that tax administration could adopt to counteract these structures

OECD approaches to Effective Exchange of Information;

OECD report on " Improving Access to Bank Information for Tax Purposes"

Develop ways to protect a country’s tax base through improving access to bank information, effective exchange of information and other international ‘good practices’ activities

Auditing Bribes Paid by Businesses

Present the OECD Bribery Awareness Handbook and OECD recommendation on non deductibility of bribes

Provide legal background information on bribes and practical tips such as the indicators of bribery, interviewing techniques and examples of bribes identified in tax audits

OECD Bribery Awareness Handbook

Increase tax examiners awareness of the pitfalls of bribery

Auditing Multinational Enterprises

Examine the legal and practical issues that a country is likely to face when auditing multinational enterprises

Administrative provisions, information requirements and the audit process needed to facilitate the work of tax examiners.  It also deals with complex international taxation issues that could arise in the taxation of multinational enterprises

Provide the partners with a frame of reference for issues that they are likely to encounter when dealing with multinational enterprises

VAT Compliance

Provide an understanding of how consumption   tax law is developed and administered and how the tax operates at the international level

Application of consumption tax to international trade, place of supply issues for both goods and services and more specific issues such as new means of transport, e-commerce, the financial services sector and telecommunications; Approaches to administration of consumption taxes in respect of abuses of systems

Consumption Tax Guidance Series

Improved policy and administration of consumption tax and encourage greater simplification and cohesion between countries’ systems

Management and Control of Large Taxpayers

Discuss issues involved in managing and operating large taxpayer units.

Tax Administration Guidance

Improved effectiveness and efficiency in the administration of large taxpayers.

Taxation of Financial Instruments

Explore how tax systems need to be modernised to adapt to the new global financial and capital markets

Examine appropriate tax policies toward innovative financial instruments that encourage the development of financial innovations and provide sufficient protection to the tax base

Guidelines on the Attribution of Business Profits to PE of Enterprises Carrying on Global Trading of Financial Instruments

Encourage the development of tax policies that promote the development of financial innovations, but at the same time protect the countries’ tax base against avoidance and evasion practices made possible by financial market developments

Taxation of Financial Markets

Explore key domestic and international taxation issues in the financial market activities

Examine the policy and practical problems in the taxation of collective investment institutions, banks and financial intermediaries, insurance activities and innovative financial transactions

Guidelines on the Attribution of Business Profits to PE of Banks; Guidelines on the Attribution of Business Profits to PE of Enterprises Carrying on Global Trading of Financial Instruments

Encourage the development of tax policies and practices that promote financial market developments

Auditing Small and Medium Sized Enterprises

Discuss strategies to fight domestic tax abuses and the roles of tax audits, including practical issues in tax audit procedures, techniques and tools

Examine all aspects of tax audits, including risk identification, resource planning, communications with the taxpayer, the preparation of an audit, the audit work programme, the use of common practical audit tools and techniques, auditing of electronic records, reporting and final assessment.

Promote a sound understanding of tax audits and their roles in dealing with the problems of the shadow economy and encourage the adoption of “good” audit practices