OECD releases peer review documents for BEPS standards

The OECD has released key documents which will form the basis of the peer reviews for two of the minimum standards from its base erosion and profit shifting (BEPS) action plan, relating to country-by-country reporting (CBCR) and the compulsory spontaneous exchange of information on tax rulings

The action 13 standard on CBCR and the action 5 standard for the compulsory spontaneous exchange of information on tax rulings (the ‘transparency framework’) are two of the four BEPS minimum standards.

Each of the four BEPS minimum standards is subject to peer review in order to ensure timely and accurate implementation and thus safeguard the level playing field. All members of the inclusive framework on BEPS, which brings together over 100 countries and jurisdictions to collaborate on implementation of the BEPS package, have committed to implementing the minimum standards and participating in the peer reviews.

The documents which have just been released form the basis on which the peer review processes will be undertaken. The compilations include the terms of reference which sets out the criteria for assessing the implementation of the minimum standard, and the methodology which sets out the procedural mechanism by which jurisdictions will complete the peer review, including the process for collecting the relevant data, the preparation and approval of reports, the outputs of the review and the follow-up process.

The peer review of the BEPs minimum standards will be undertaken by the Forum on Harmful Tax Practices (FHTP). The review will evaluate the implementation of the standard against an agreed set of criteria. These criteria are set out in the terms of reference, which include each of the elements that a jurisdiction needs to demonstrate it has fulfilled in order to show proper implementation of the standard. The methodology proposes collecting the data points relevant to the peer review by using standardised questionnaires, sent to the reviewed jurisdiction as well as the peers (ie, the other members of the inclusive framework on BEPS).

The peer review documents for BEPS Action 13 on Country-by-Country Reporting are here.

The peer review documents for BEPS Action 5 on Harmful Tax Practices: Transparency Framework are here.

Pat Sweet |Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

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