1. Chile was reviewed as part of the 2017/2018 and the 2018/2019 peer reviews. This report is supplementary to those previous reports (OECD, 2019[1]) (OECD, 2018[2]).
2. The first filing obligation for a CbC report in Chile commences in respect of fiscal years commencing on or after 1 January 2016.
3. Chile’s domestic and administrative framework to implement the Action 13 minimum standard meets all applicable terms of reference (OECD, 2017[3]), except that:
It is recommended that Chile introduce enforcement measures applicable to Surrogate Parent Entities. This recommendation is unchanged since the 2017/2018 peer review.
4. It is recommended that Chile take steps to implement processes or written procedures to ensure that the exchange of information is conducted in a manner consistent with the terms of reference (OECD, 2017[3]) relating to the exchange of information framework as soon as possible. This recommendation remains unchanged since the 2018/2019 peer review.
5. it is recommended the Chile take steps to ensure that reports are exchanged by the required date.
6. It is recommended that Chile take steps to ensure that the appropriate use condition is met ahead of the first exchanges of information. This recommendation remains unchanged since the 2017/2018 peer review.
7. Chile meets all the terms of reference relating to the domestic legal and administrative framework, with the exception of the absence of enforcement measures on Surrogate Parent Entities.
8. No changes were identified.
9. No changes were identified.
10. No changes were identified.
11. No changes were identified.
12. It is recommended that Chile take steps to introduce enforcement measures applicable to Surrogate Parent Entities, as the current penalties only apply to Ultimate Parent Entities. This recommendation remains unchanged since the 2017/2018 peer review.
13. Chile meets all the terms of reference relating to the domestic legal and administrative framework, with the exception of the absence of enforcement measures on Surrogate Parent Entities.
14. As of 31 March 2020, Chile has 71 bilateral relationships in place for the exchange of CbC reports activated under the CbC MCAA. Within the context of its international exchange of information agreements that allow automatic exchange of tax information, Chile has taken steps to have qualifying competent authority agreements in effect with jurisdictions of the Inclusive Framework that currently meet the confidentiality, consistency and appropriate use conditions. Regarding Chile’s exchange of information framework, no inconsistencies with the terms of reference were identified.1
15. No changes were identified.
16. No changes were identified.
17. Peer input was received that Chile exchanged some reports relating to the 2017 reporting periods after the required date.
18. As Chile have not provided any information in relation to these late exchanges it is recommended the Chile take steps to ensure that reports are exchanged by the required date.
19. No changes were identified.
20. No changes were identified.
21. No changes were identified.
22. No changes were identified.
23. It is recommended that Chile take steps to implement processes or written procedures to ensure that the exchange of information is conducted in a manner consistent with the terms of reference relating to the exchange of information framework as soon as possible. This recommendation remains unchanged since the 2018/2019 peer review.
24. It is recommended the Chile take steps to ensure that reports are exchanged by the required date
25. No changes were identified.
26. Chile is recommended to take steps to ensure that appropriate use condition is met as soon as possible.
|
Aspect of the implementation that should be improved |
Recommendation for improvement |
|
|---|---|---|
|
Part A |
Domestic legal and administrative framework |
It is recommended that Chile introduce enforcement measures applicable to Surrogate Parent Entities. |
|
Part B |
Exchange of information framework |
It is recommended that Chile take steps to implement the necessary processes or written procedures to ensure that the exchange of information is conducted in a manner consistent with the terms of reference relating to the exchange of information framework. |
|
Part B |
Exchange of information framework |
It is recommended that Chile take steps to ensure that reports are exchanged by the required date. |
|
Part C |
Appropriate use |
It is recommended that Chile take steps to ensure that the appropriate use condition is met as soon as possible. |
OECD (2019), Country-by-Country Reporting – Compilation of Peer Review Reports (Phase 2): Inclusive Framework on BEPS: Action 13, OECD/G20 Base Erosion and Profit Shifting Project, OECD Publishing, Paris, https://dx.doi.org/10.1787/f9bf1157-en. [1]
OECD (2018), Country-by-Country Reporting – Compilation of Peer Review Reports (Phase 1): Inclusive Framework on BEPS: Action 13, OECD/G20 Base Erosion and Profit Shifting Project, OECD Publishing, Paris, https://dx.doi.org/10.1787/9789264300057-en. [2]
OECD (2017), Terms of reference for the conduct of peer review of the Action 13 minimum standard on country-by-country reporting, OECD Publishing, https://www.oecd.org/tax/beps/beps-action-13-on-country-by-country-reporting-peer-review-documents.pdf. [3]
← 1. No inconsistency with the terms of reference will be identified where a QCAA is not in effect with one or more jurisdictions of the Inclusive Framework that meet the confidentiality, consistency and appropriate use conditions, but this is due to circumstances that are not under the control of the reviewed jurisdiction. This may include, for example, where the other jurisdiction intends to exchange CbC reports using the MCAA but it does not have the Convention in effect for the relevant fiscal period, or where the other jurisdiction has declined to have a QCAA in effect with the reviewed jurisdiction.