Harmful Tax Practices – 2024 Peer Review Reports on the Exchange of Information on Tax Rulings

Burkina Faso

Burkina Faso is continuing to take steps to implement the transparency framework and commence administrative preparations to ensure that the exchange of information for relevant rulings is carried out in a timely manner and in accordance with the terms of reference (OECD, 2021[1]) (ToR). Burkina Faso receives two recommendations on this point covering the information gathering process (ToR I.A) and exchange of information (ToR II.B) for the calendar year 2024 (year in review).

In the prior year’s report, as well as in the 2020-2022 report, Burkina Faso had received the same two recommendations. As they have not been addressed, the recommendations remain in place.

Burkina Faso can legally issue four types of rulings within the scope of the transparency framework.

In practice, Burkina Faso did not issue any type of 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 Burkina Faso.

Information gathering process (ToR I.A)

1. Burkina Faso can legally issue the following four types of rulings within the scope of the transparency framework: (i) preferential regimes; (ii) rulings providing for unilateral downward adjustments; (iii) permanent establishment rulings; and (iv) related party conduit rulings.

Past rulings (ToR I.A.1.1, I.A.1.2, I.A.2.1, I.A.2.2)

2. For Burkina Faso, past rulings are any tax rulings within scope that are issued either: (i) on or after 1 January 2015 but before 1 April 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.

3. In the prior years’ peer review reports, it was determined that Burkina Faso could not issue rulings under the transparency framework before 2020, therefore this section is not evaluated.

Future rulings (ToR I.A.1.1, I.A.1.2, I.A.2.1)

4. For Burkina Faso, future rulings are any tax rulings within scope that are issued on or after 1 April 2017.

5. The prior years’ reports indicated that there were no processes in place to keep track of rulings for the purposes of the transparency framework. Burkina Faso was recommended to finalise its information gathering process as soon as possible. As Burkina Faso is still taking steps to finalise its information gathering process, the recommendation remains in place.

Review and supervision (ToR I.A.3)

6. In the prior years’ peer review reports, it was determined that Burkina Faso did not yet have a review and supervision mechanism under the transparency framework. Therefore, Burkina Faso was recommended to put in place a review and supervision mechanism as soon as possible. As Burkina Faso has not yet put in place a review and supervision mechanism under the transparency framework for the year in review, the recommendation remains in place.

Conclusion on section A

7.  Burkina Faso is recommended to finalise its information gathering process for identifying all relevant rulings and all potential exchange jurisdictions and to implement a review and supervision mechanism, as soon as possible (ToR I.A).

Exchange of information (ToR II.B)

Legal basis for spontaneous exchange of information (ToR II.B.1, II.B.2)

8. Burkina Faso has the necessary domestic legal basis to exchange information spontaneously. Burkina Faso noted that there are no legal or practical impediments that prevent the spontaneous exchange of information on rulings as contemplated in the Action 5 minimum standard.

9. Burkina Faso has international agreements permitting spontaneous exchange of information, including: (i) the Multilateral Convention on Mutual Administrative Assistance in Tax Matters: Amended by the 2010 Protocol (OECD/Council of Europe, 2011[2]) (“the Convention”) and (ii) bilateral agreements in force with eight jurisdictions.1

Completion and exchange of templates (ToR II.B.3, II.B.4, II.B.5, II.B.6, II.B.7)

10. In prior years’ peer review reports, it was determined that Burkina Faso did not put in place a process to complete the templates on relevant rulings, to make them available to the Competent Authority for exchange of information, and to exchange them with relevant jurisdictions. It is not known whether Burkina Faso has not yet put in place a process for exchanging information on decisions in accordance with the form and timelines required by the Action 5 transparency framework. Therefore, this recommendation remains in force.

11. As no exchanges took place in the year of review, no data on the timeliness of exchanges can be reported.

Conclusion on section B

12.  Burkina Faso is recommended to put in place a domestic legal framework allowing spontaneous exchange of information on rulings and to continue its efforts to complete the templates for all relevant rulings and to ensure that the exchanges of information on rulings occur as soon as possible (ToR II.B).

Statistics (ToR IV.D)

13. As no information on rulings was exchanged by Burkina Faso for the year in review, no statistics can be reported.

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

14. Burkina Faso does not offer an intellectual property regime for which transparency requirements under the Action 5 Report (OECD, 2015[3]) 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
Burkina Faso has not yet finalised its information gathering process and has not yet put in place a review and supervision mechanism under the transparency framework for the year in review.	Burkina Faso is recommended to finalise its information gathering process to identify all relevant future rulings and all potential exchange jurisdictions and to implement a review and supervision mechanism, as soon as possible. This recommendation remains unchanged since the 2020, 2021, 2022 and 2023 peer review reports.
Burkina Faso has not yet put in place a process to complete the templates on relevant rulings, to make them available to the Competent Authority for exchange of information, and to exchange them with relevant jurisdictions.	Burkina Faso is recommended to establish a process to develop templates on relevant rulings and ensure that information on these rulings is exchanged in a timely manner and in the format required by the transparency framework. This recommendation remains unchanged since the 2020, 2021,2022 and 2023 peer review reports.

Note

← 1.  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. Burkina Faso also has bilateral agreements with Tunisia and multilateral agreements with Benin, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo within WAEMU.