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OECD Announces a Proposed Model of Automatic Exchange of Information for Countries 

Global Tax Adviser

 

September 10, 2013

 

David Francescucci
Montreal, National Leader, Value Chain Management

 

The Organisation for Economic Co-operation and Development (OECD) has released a report to the G20 Leaders' Summit describing the status of the OECD's efforts and action plan to address base erosion and profit shifting (BEPS). The G20 Leaders' Summit was held in St. Petersburg on September 5-6, 2013.

The OECD report consists of two parts. Part I is a progress report by the Global Forum on Transparency and Exchange of Information for Tax Purposes, which focuses on "peer review reports" that assess jurisdictions' commitment to the international standard for tax information exchange. Part II is a report on the work on BEPS and efforts to address offshore tax evasion by the OECD Secretary-General.

 

In Part II of the report, the OECD describes proposals to establish a global model for the automatic exchange of information for tax purposes as the new international standard for tax co-operation, including model operating documents and platforms, which it expects to have completed by 2014. The OECD outlines the key success factors for an effective model and notes that countries can put this model into practice where they:

 

  • Enact broad framework legislation to facilitate the expansion of a country's network of partner jurisdictions
  • Select or enter into a legal basis for the exchange of information
  • Adapt the scope of reporting and due diligence requirements and coordinating guidance
  • Develop common or compatible IT standards.

 

The report provides potential timeframes for each action item.

 

For more information, contact your KPMG adviser.

 

 

 

 

Information is current to September 10, 2013. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500

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