BEPS Action 12-Mandatory Disclosure: TEI comments
Tax Executives Institute (TEI) has provided comments to the issuance of BEPS Action 12 Discussion Draft.
A link to TEI’s comments is provided for reference:
Click to access TEI%20Comments%20BEPS%20Action%2012%20-%20Mandatory%20Disclosure%20-%20FINAL%20to%20OECD%2029%20April%202015.pdf
- Multiple levels of disclosure options are provided, leading to inconsistency and complexity
- Information provided is yet another compliance burden for MNE’s, with little cost/benefit to tax authorities
- Concern about release of information to the public, especially prior to the time that full appeals are exhausted
- Tax disclosure should only be required upon filing a tax return with a tax benefit from a reportable transaction
- Limited rules re: who should report
- Primary purpose or de minims filter process is not recommended
- Reporting should be limited to new or innovative aggressive tax planning structures
- Countries with criminal liability provisions should exclude reported transactions with self-incrimination protection
- Penalty protection for reported transactions
TEI’s comments are well written, concise, practical and relevant. Their comments should be carefully reviewed prior to implementation of additional disclosures re: BEPS Action 12 that may prove to have little benefit and significant complexity.