Under BEPS Action 14, jurisdictions have committed to implement a minimum standard to improve the resolution of tax-related disputes between jurisdictions. The OECD has recently released the stage 2 peer review monitoring reports for Australia, Ireland, Israel, Japan, Malta, Mexico, New Zealand and Portugal.

These reports evaluate the progress made by these eight jurisdictions in implementing any recommendations resulting from their stage 1 peer review. They take into account any developments in the period 1 January 2018 – 31 August 2019 and build on the MAP statistics for 2016-2018.

Highlights include:

  • The Multilateral Instrument was signed by all eight jurisdictions and has already been ratified by seven 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.
  • Australia, Ireland, Japan, Malta, New Zealand and Portugal now have a documented bilateral notification/consultation process that they apply in cases where an objection is considered as being not justified by their competent authority.
  • Australia, Ireland, Israel, Japan, Mexico, New Zealand and Portugal have added more personnel to the competent authority function and/or have made organisational improvements with a view to handle MAP cases in a more timely, effective and efficient manner.
  • Australia and Malta closed MAP cases within the pursued average time of 24 months. Furthermore, Israel, New Zealand and Portugal decreased the amount of time needed to close MAP cases.
  • Ireland and Mexico introduced legislative changes to ensure that MAP agreements can always be implemented notwithstanding domestic time limits, which was already the case for Japan and Portugal.
  • All jurisdictions have issued or updated their MAP guidance.

Further information available here.


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