Released 31 March 2021
The OECD has reported that 12 no or only nominal tax jurisdictions have begun their first tax information exchanges under the Forum on Harmful Tax Practice’s (FHTP) global standard on substantial activities.
The new annual exchanges cover information on the identity, activities and ownership chain of entities established in no or only nominal tax jurisdictions that are either non-compliant with substance requirements or engage in intellectual property or other high-risk activities. The exchanges will enable receiving tax administrations to carry out risk assessments and to apply their controlled-foreign company, transfer pricing and other anti-base erosion and profit shifting provisions.
The FHTP is monitoring both the legal and practical implementation of the standard by no or only nominal tax jurisdiction through a rigorous, annual peer review process under Action 5 of the OECD/G20 Inclusive Framework on BEPS. The next annual results will be released in December 2021.
Further information can be found at http://www.oecd.org/tax/beps/beps-actions/action5/.