Public comments are invited on a discussion draft which deals with follow-up work mandated by the Report on Action 6 (“Prevent the granting of treaty benefits in inappropriate circumstances”) of the BEPS Action Plan.
The Committee on Fiscal Affairs (CFA) invites interested parties to send comments on this discussion draft, which includes the preliminary results of the work carried on with respect to issues related to the artificial avoidance of PE status and includes proposals for changes to the definition of permanent establishment found in the OECD Model Tax Convention.
Almost 300 senior tax officials from more than 100 countries and international organisations met in Paris on 25-26 September 2014 during the 19th Annual Global Forum on Tax Treaties to discuss solutions to unintended double non-taxation caused by base erosion and profit shifting (BEPS).
This report includes proposed changes to the OECD Model Tax Convention to prevent treaty abuse. Countries participating in the BEPS Project have agreed on a minimum standard to prevent treaty shopping and other strategies aimed at obtaining inappropriately the benefit of certain provisions of tax treaties. The report also ensures that tax treaties do not inadvertently prevent the application of legitimate domestic anti-abuse rules. The report clarifies that tax treaties are not intended to be used to generate double non-taxation and identifies the tax policy considerations that countries should consider before deciding to enter into a tax treaty with another country. The model provisions included in the report provide intermediary guidance as additional work is needed, in particular in relation to the limitation on benefits rule.
The OECD Model Tax Convention and the worldwide network of tax treaties based upon it help to avoid the danger of double taxation in the case of cross-border investment.
The OECD Council approved yesterday the contents of the 2014 update to the OECD Model Tax Convention. The update will be incorporated in a revised version of the Model Tax Convention that will be published in the next few months.
OECD publishes comments received on Action 2 discussions drafts (Neutralise the Effects of Hybrid Mismatch Arrangements)
The OECD publishes comments received from interested parties on the discussion draft on Action 6 (Prevent Treaty Abuse) of the BEPS Action Plan.
Public comments are invited on discussion drafts that include the proposals produced with respect to Action 2 (Hybrid Mismatch Arrangements) of the BEPS Action Plan.
Public comments are invited on a discussion draft that includes the proposals produced with respect to Action 6 (Prevent Treaty Abuse) of the BEPS Action Plan.