Strategizing International Tax Best Practices – by Keith Brockman

The OECD has participated in recent regional meetings in Eurasia and Latin America, among others, following through on its plan to assist developing countries with the BEPS initiative.  The OECD publication entitled “The BEPS Project and Developing Countries: From Consultation to Participation” and a summary of the Latin America meeting are provided for reference.

http://www.oecd.org/ctp/strategy-deepening-developing-country-engagement.pdf

http://www.oecd.org/ctp/beps-regional-network-lac-co-chairs-summary-of-discussions.pdf

Observations:

The summary of the regional meetings highlights important trends, indicating alignment and future deviations from the new OECD guidelines.

The Latin America summary observes the region does not approve of unilateral legislation for the interest initiative, noting individual countries should wait for final guidelines to ensure alignment.

In contrast, the region expressed concerns of their administrative capacity to implement the automatic exchange of information procedures.  However, the countries also expressed a desire to access country-by-country reports, assess whether such information is satisfactory, and evaluate the proposed filing threshold for regional MNE groups.  These statements indicate a potential shift from the new guidelines to possibly implement standards that are region specific, and thereby non-conforming with the BEPS guidelines.  

Accordingly, MNE’s should follow these meetings closely to provide flexibility for future BEPS compliance that will be more complex than it now appears.  

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