IoM, Jersey and Guernsey among new BEPS agreement signees
The Isle of Man, Jersey and Guernsey were among five jurisdictions that jointly signed up to the OECD’s Multilateral Competent Authority Agreement for the automatic exchange of country-by-country reports at a gathering in Paris last week, as the global organisation continued its efforts to rein in the use of tax avoidance strategies by multinational companies.
The three Crown Dependencies were joined at the signing table by Brazil and Latvia, bringing the total number of MCAA signatories thus far to 49.
The Multilateral Competent Authority Agreement (MCAA) is designed to “enable consistent and swift implementation of new transfer pricing reporting standards developed under Action 13 of the BEPS [base erosion and profit-shifting] Action Plan” the OECD said, in a statement released after the signing.
When completed and in force, the MCAA will, the OECD added, help to ensure that tax administrations “obtain a complete understanding of the way MNEs [multi-national enterprises] structure their operations through the annual automatic exchange of country-by-country reports, while also ensuring that the confidentiality of such information is safeguarded”.
Among those signing the document on behalf of their jurisdictions were Jersey’s chief minister, Ian Gorst; Guernsey deputy Lyndon Trott; and the Isle of Man’s recently-elected chief minister, Howard Quayle (all three are pictured above, in this order, with the OECD’s Gurría second from left, between Gorst and Trott).
During the signing event, OECD secretary-general Angel Gurría expressed his congratulations to the five jurisdictions for “their efforts toward implementing the BEPS package, and…their important role in advancing greater international tax cooperation and transparency”.
Last week’s signing comes a year after a group of leaders of G20 countries endorsed a wide-ranging package of new measures – developed over the preceding two years by the OECD and the the finance ministers of the G20 countries, along with officials from more than a dozen developing countries – which were aimed at curtailing corporate tax avoidance, including that which makes use of so-called base erosion and profit-shifting structures.
To read and download 2 22-page “explanatory statement” on the OECD’s BEPS Project, click here.
Brazil joins the CRS MCAA
Also at last week’s OECD gathering in Paris, Brazil formally signed up to the OECD’s CRS [Common Reporting Standard] Multilateral Competent Authority Agreement (CRS MCAA), re-confirming its earlier commitment to participating in the OECD/G20 Common Reporting Standard scheme. Brazil thus became the 85th country to signed up to the CRS programme, which is similar to the US FATCA agreement and obliges financial institutions in participating countries to automatically exchange information on “reportable accounts” held in these countries with the tax authorities of the countries in which the account-holders are considered resident for tax purposes.