11/07/2016 – Today the OECD has released (i) a discussion draft which deals with the design and operation of the group ratio rule under Action 4 of the BEPS Action Plan, and (ii) standardised IT-format for the exchange of tax rulings (ETR) between jurisdictions – the ETR XML Schema – under BEPS Action 5. The OECD also welcomes Angola and the Seychelles as the 83rd and 84th members of the Inclusive Framework on BEPS.
Discussion Draft on Group Ratio Rule under BEPS Action 4
Interested parties are invited to provide comments on a discussion draft which deals with elements of the design and operation of the group ratio rule under Action 4 (Interest deductions and other financial payments) of the BEPS Action Plan. Comments should be submitted by 16 August 2016 at the latest (no extension will be granted) by email to firstname.lastname@example.org in Word format.
Angola and the Seychelles join the Inclusive Framework on BEPS
Following the first meeting of the Inclusive Framework on BEPS in Kyoto, Japan, on 30 June-1 July, more countries and jurisdictions are joining the framework. On 7 July, the Inclusive Framework on BEPS welcomed Angola and the Seychelles as its 83rd and 84th member respectively. It is expected that most of the countries and jurisdictions that attended the Kyoto meeting as Invitees will join the Inclusive Framework in the coming months.
BEPS Action 5 exchange of Tax Rulings XML Schema: User Guide for Tax Administrations
As a key outcome of the work on BEPS Action 5 (Harmful Tax Practices), a framework covering all rulings that could give rise to BEPS concerns in the absence of compulsory spontaneous exchange has been agreed. The framework covers six categories of rulings: (i) rulings related to preferential regimes; (ii) cross border unilateral advance pricing arrangements (APAs) or other unilateral transfer pricing rulings; (iii) rulings giving a downward adjustment to profits; (iv) permanent establishment (PE) rulings; (v) conduit rulings; and (vi) any other type of ruling where the FHTP agrees in the future that the absence of exchange would give rise to BEPS concerns.
The ETR XML Schema provides the common IT-format for implementing the exchange of tax rulings between Competent Authorities, as foreseen by Action 5. The related ETR XML Schema User Guide further explains the information required to be included in each data element to be reported. It also contains guidance on how to make corrections of data element within a file.
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