Under BEPS Action 14, jurisdictions have committed to implement a minimum standard to improve the resolution of tax-related disputes between jurisdictions. On Thursday 22 October, the OECD has released the stage 2 peer review monitoring reports for Czech Republic, Denmark, Finland, Korea, Norway, Poland, Singapore and Spain.

These reports evaluate the progress made by these eight jurisdictions in batch 3, in implementing any recommendations resulting from jurisdictions’ stage 1 peer review reports. The stage 2 monitoring takes into account any developments in the period 1 August 2017 – 28 February 2019 and the MAP statistics are based on years 2016, 2017 and 2018.

The results from the peer review and peer monitoring process demonstrate positive changes across all eight jurisdictions, although not all show the same level of progress. Highlights include:

  • The Multilateral Instrument was signed by all eight jurisdictions and has already been ratified by five of them, which brings a substantial number of their treaties in line with the standard. In addition, there are bilateral negotiations either ongoing or concluded.
  • Denmark, Finland, Korea, Norway, Poland, Singapore and Spain now have a documented notification/bilateral consultation process to be applied in cases where an objection is considered as being not justified by their competent authority.
  • All jurisdictions have added more personnel to the competent authority function and/or made organisational improvements with a view to handle MAP cases in a more timely, effective and efficient manner.
  • Denmark, Finland, Korea, Norway, Singapore and Spain decreased the amount of time needed to close MAP cases.
  • Singapore introduced legislative changes to ensure that all MAP agreements can be implemented notwithstanding domestic time limits if the treaty does not provide for it, while in five of the other seven jurisdictions this is already the case.
  • Denmark, Finland, Korea, Norway and Singapore have issued or updated their MAP guidance.

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