Harmful Tax Practices – 2020 Peer Review Reports on the Exchange of Information on Tax Rulings

Sint Maarten

Sint Maarten has met all aspects of the terms of reference (OECD, 2021[3]) (ToR) for the calendar year 2020 (year in review) that can be met in the absence of rulings being issued in practice, and no recommendations are made.

Sint Maarten can legally issue five types of rulings within the scope of the transparency framework.

In practice, Sint Maarten issued no rulings within the scope of the transparency framework.

As no exchanges were required to take place, no peer input was received in respect of the exchanges of information on rulings received from Sint Maarten.

A. The information gathering process (ToR I.A)

1023. Sint Maarten can legally issue the following five types of rulings within the scope of the transparency framework: (i) preferential regimes;1 (ii) cross-border unilateral APAs and any other cross-border unilateral tax rulings (such as an advance tax ruling) covering transfer pricing or the application of transfer pricing principles; (iii) rulings providing for unilateral downward adjustments; (iv) permanent establishment rulings; and (v) related party conduit rulings.

1024. For Sint Maarten, past rulings are any tax rulings within scope that are issued either: (i) on or after 1 January 2015 but before 1 September 2017; or (ii) on or after 1 January 2012 but before 1 January 2015, provided they were still in effect as at 1 January 2015. Future rulings are any tax rulings within scope that are issued on or after 1 September 2017.

1025. In the prior year peer review report, it was determined that Sint Maarten’s undertakings to identify past and future rulings and all potential exchange jurisdictions were sufficient to meet the minimum standard. In addition, it was determined that Sint Maarten’s review and supervision mechanism was sufficient to meet the minimum standard. Sint Maarten’s implementation remains unchanged, and therefore continues to meet the minimum standard.

1026. Sint Maarten has met all of the ToR for the information gathering process and no recommendations are made.

B. The exchange of information (ToR II.B)

1027. Sint Maarten has international agreements permitting spontaneous exchange of information, including being a jurisdiction participating in (i) the Multilateral Convention on Mutual Administrative Assistance in Tax Matters: Amended by the 2010 Protocol (OECD/Council of Europe, 2011[4]) (“the Convention”) and (ii) bilateral agreements in force with three jurisdictions.2

1028. As Sint Maarten did not issue any rulings within the scope of the transparency framework in the relevant period, Sint Maarten was not required to exchange any information on rulings in the year in review and no data on the timeliness of exchanges can be reported.

1029. In the prior year peer review report, it was determined that Sint Maarten’s process for the completion and exchange of templates were sufficient to meet the minimum standard. With respect to past rulings, no further action was required. Sint Maarten’s implementation in this regard remains unchanged and therefore continues to meet the minimum standard.

1030. Sint Maarten has the necessary legal basis for spontaneous exchange of information, a process for completing the templates in a timely way and has completed all exchanges. [country] has met all of the ToR for the exchange of information process and no recommendations are made.

C. Statistics (ToR IV)

1031. As no rulings were issued, no statistics can be reported.

D. Matters related to intellectual property regimes (ToR I.A.1.3)

1032. Sint Maarten does not offer an intellectual property regime for which transparency requirements under the Action 5 Report (OECD, 2015[1]) were imposed.

Summary of recommendations on implementation of the transparency framework

Aspect of implementation of the transparency framework that should be improved	Recommendation for improvement
	No recommendations are made.

References

[3] OECD (2021), BEPS Action 5 on Harmful Tax Practices - Terms of Reference and Methodology for the Conduct of the Peer Reviews of the Action 5 Transparency Framework, OECD Publishing, Paris, http://www.oecd.org/tax/beps/beps-action-5-harmful-tax-practices-peer-review-transparency-framework.pdf.

[1] OECD (2015), Countering Harmful Tax Practices More Effectively, Taking into Account Transparency and Substance, Action 5 - 2015 Final Report, OECD/G20 Base Erosion and Profit Shifting Project, OECD Publishing, Paris, https://dx.doi.org/10.1787/9789264241190-en.

[2] OECD (ed.) (2017b), Harmful Tax Practices - 2017 Progress Report on Preferential Regimes, OECD Publishing, Paris, http://dx.doi.org/10.1787/9789264283954-en.

[4] OECD/Council of Europe (2011), The Multilateral Convention on Mutual Administrative Assistance in Tax Matters: Amended by the 2010 Protocol, OECD Publishing, Paris, https://dx.doi.org/10.1787/9789264115606-en.

Notes

← 1.  Tax exempt company.

← 2.  Participating jurisdictions to the Convention are available here: www.oecd.org/tax/exchange-of-tax-information/convention-on-mutual-administrative-assistance-in-tax-matters.htm. Sint Maarten also has bilateral agreements with the Netherlands, Norway and the United States.