Tax

Platform for Collaboration on Tax

 

Overview

The Platform for Collaboration on Tax is a joint effort launched in April 2016 by the International Monetary Fund (IMF), the Organisation for Economic Co-operation and Development (OECD), the United Nations (UN) and the World Bank Group (WBG). The Platform is designed to intensify the co-operation between these International Organisations (IOs) on tax issues. It formalises regular discussions between the four IOs on the design and implementation of standards for international tax matters, strengthens their ability to provide capacity-building support to developing countries, and helps them deliver jointly developed guidance. It also increases their ability to share information on operational and knowledge activities around the world.

 

 

LATEST NEWS

 

24/01/2017 - The Platform for Collaboration on Tax invites comments on a draft toolkit

The Platform now seeks public feedback on a toolkit which specifically addresses the ways developing countries can overcome a lack of data on "comparables". Deadline 7 April 2017.

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This effort comes at a time of great momentum around international tax issues, and was welcomed by the G20 finance ministers at their February 2016 meeting in Shanghai. Amid the growing importance of taxation in the debate to achieve the UN Sustainable Development Goals (SDGs), a major aim of the Platform is to better frame technical advice to developing countries as they seek both more capacity support and greater influence in designing international rules.

 

Among the Platform's tasks are to deliver a number of publications designed to help developing countries implement the measures developed under the G20/OECD Base Erosion and Profit Shifting Project (BEPS) among other international tax issues. There is an important link between this work and the BEPS implementation framework. Platform members hold regular meetings with representatives of developing countries, regional tax organisations, banks and donors. Consultations with business and civil society are organised as needed.

 

For more information about the Platform for Collaboration on Tax, read the jointly-developed Concept Note.

PUBLICATIONS

Enhancing the Effectiveness of External Support in Building Tax Capacity in Developing Countries
25 July 2016

 

In February 2016, G20 Finance Ministers called upon the IMF, OECD, UN and World Bank Group to "recommend mechanisms to help ensure effective implementation of technical assistance programmes, and recommend how countries can contribute funding for tax projects and direct technical assistance, and report back with recommendations" at their July meeting. The four organisations – drawing on their individual experiences in delivering technical advice and their interactions with other providers of technical assistance, development partners, and especially country governments – developed a series of recommendations and enabling actions in response to this request.

The recommendations in this report further benefitted from a public request for feedback on draft recommendations which attracted responses from governments, businesses, civil society and individuals.

Cover page of Toolkit For Addressing Difficulties in Accessing Comparables Data for Transfer Pricing Analyses - Discussion Draft

 

TOOLKITS

The OECD is working with developing countries, the IMF, the World Bank Group and the UN along with regional tax organisations to address the top priority BEPS issues identified by developing countries in a two-part report published in 2014. This work was mandated by the G20 Development Working Group in response to the 2014 report, and is aimed at ensuring that developing countries can benefit from the outcomes of the BEPS Project, as well as from practical solutions to the BEPS-related challenges that these countries are facing, like wasteful tax incentives.

 

The outcomes of the BEPS Project delivered in 2015 change the international taxation environment, and as a consequence 2016 and 2017 will be focused on implementation, including on the development of practical tools for developing countries in the following areas :

  1. Options for Low Income Countries' Effective and Efficient Use of Tax Incentives for Investment;
  2. Toolkit for Addressing Difficulties in Accessing Comparables Data for Transfer Pricing Analyses;
    Supplementary Material: Addressing the Information Gaps on Prices of Minerals Sold in an Intermediate Form
  3. Report on indirect transfers of assets;
  4. Toolkit on Transfer Pricing Documentation requirements;
  5. Toolkit on Tax Treaty Negotiation;
  6. Toolkit on Base Eroding Payments;
  7. Toolkit on Supply Chain Restructuring; and
  8. Toolkit on assessment of BEPS risks.

 

1. Options for Low Income Countries' Effective and Efficient Use of Tax Incentives for Investment
15 October 2015

 

Low income countries often face acute pressures to attract investment by offering tax incentives, which then erode the countries' tax bases with little demonstrable benefit in terms of increased investment. The Platform partner organisations were asked to use their shared expertise — based on many years of country interactions and analysis—to assist low income countries in making better use of tax incentives.

Drawing on recent country experiences and an extensive range of studies, the IOs prepared this report aiming to take a fresh look at tax incentive policies in low income countries. The report offers guidance on the design and governance of tax incentives and suggests good practices. Since much of the pressure to offer incentives stems from an awareness of those offered by other countries, the report also discusses options for international coordination to address the risk of mutually damaging spillovers from such tax competition.

A separate background document is also available, which reviews practical tools and models that can help assess the costs and benefits of tax incentives. This is essential to enhance transparency and support informed decision making.

 

 

 

2. Toolkit for Addressing Difficulties in Accessing Comparables Data for Transfer Pricing Analyses
24 January 2017

 

The Platform partners seek comments by 7 April 2017 from interested stakeholders on the draft toolkit, including the supplementary material on minerals pricing, with the aim of finalising it in the coming months.

Transfer pricing – the value assigned to transactions between subsidiaries of multinational corporations – is an increasingly critical issue in a globalised world. This draft toolkit examines how tax administrations can evaluate the correctness of the transfer prices set by multinationals when there is insufficient information available to governments on market-based transactions that are comparable to those reported by the multinational corporation ("comparables"). The toolkit offers advice on making the best use of data that exists and options for monitoring the behaviour of multinational corporations in situations in which no data is available.

In addition, since the pricing of transactions in the extractive industries is an issue of particular relevance to many low-income countries, the draft toolkit also addresses the information gaps on prices of minerals sold in an intermediate form. The supplementary material on minerals pricing (Addressing the Information Gaps on Prices of Minerals Sold in an Intermediate Form) provides a systematic process that could be used by tax administrations to map the transformation chain for a particular mineral, identify key traded products and establish common industry pricing practices. Detailed case studies demonstrating the process are then provided for copper, gold, thermal coal and iron ore. The supplementary material is also available in French (Combler le manque d’informations sur les prix des minéraux vendus sous une forme intermédiaire) and Spanish (Reduciendo la brecha de información sobre los precios de los minerales vendidos en formas intermedias).

 ‌Cover page of Toolkit For Addressing Difficulties in Accessing Comparables Data for Transfer Pricing Analyses - Discussion Draft

 

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MORE INFORMATION

Visit the official website: www.worldbank.org/en/programs/platform-for-tax-collaboration

If you have any OECD-specific queries, you are invited to e-mail CTP.Contact@oecd.org.

 

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