The base erosion and profit shifting (BEPS) Action Plan is already becoming a reality, with countries already having implemented some of the BEPS proposals, the OECD has told the Group of Twenty (G-20) member nations.
In a report submitted to the G-20 Finance Ministers and Central Bank Governors on February 26-27, 2016, the OECD's Secretary General, Angel Gurría, said that a number of countries have already adopted legislative changes to implement a number of the BEPS measures, including proposals contained under BEPS Action 2 (on neutralizing the effects the hybrid mismatch arrangements) and BEPS Action 13 (on transfer pricing documentation and country-by-country reporting).
The report states: "Many countries have already enacted legislation or regulations to require companies to file their country-by-country (CbC) reports in accordance with the requirements included in the BEPS Action 13 Report, and discussions are being held at the technical level to ensure a smooth implementation. Further 32 countries have already signed the Multilateral Competent Authorities Agreement, which provides the legal mechanisms to exchange CbC Reports automatically. Additional signings will happen later in 2016, and will mean that information concerning 2016 accounts of MNEs should be filed in 2017, and then exchanged as planned in 2017 or 2018."
The report states that countries are updating their transfer pricing rules to introduce the changes proposed in BEPS Actions 8-10.
In addition, the report said a second meeting was held on February 15-16 to discuss the multilateral instrument to amend tax treaties, with 95 countries participating.
The report also notes agreement on an inclusive framework for BEPS implementation. Under the framework, "BEPS Associate" status in the OECD's Committee on Fiscal Affairs will be extended to all interested and committed countries and jurisdictions, bringing them on an equal footing with the G-20 and OECD countries in setting anti-BEPS standards and monitoring implementation. Monitoring will in particular focus on harmful tax practices, tax treaty abuse, the CbC reporting requirement, and cross-border tax dispute resolution. The first meeting of this expanded group is proposed to be held at the end of June 2016.- See more at: http://www.tax-news.com/news/Countries_Adopting_BEPS_Proposals_OECD_Tells_G20____70578.html#sthash.Q...