OECD pilots international tax compliance assurance programme

The UK has signed up to a voluntary programme being tested out by the OECD’s forum on tax administration that will use country-by-country reports and other information to facilitate open and co-operative multilateral engagements between multinational groups and tax administrations

The initiative, called the international compliance assurance programme (ICAP) was launched in Washington DC this week, and has been developed by the forum on tax administration’s large business and international programme and is sponsored by the Canada Revenue Agency.

The pilot for ICAP includes eight member tax administrations: Australia, Canada, Italy, Japan, the Netherlands, Spain, UK, US.

The OECD says that by co-ordinating conversations between a multinational group and tax administrations in several jurisdictions, the programme should ensure a more effective use of transfer pricing information (including that contained in a group's country-by-country report, master file and local file), a more efficient use of resources both for the multinational and for tax administrations and, in the longer term, fewer cases entering into mutual agreement proceedings (MAP).

A multilateral assessment of specific international tax risks posed by each multinational group in the pilot will commence during the first half of 2018 and is expected to be completed within a target timeframe of 12 months.

International Compliance Assurance Programme Pilot Handbook is here.

Report by Pat Sweet

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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