The BEPS Action Plan includes 15 actions to address BEPS in a comprehensive manner and sets deadlines to implement these actions. 2. The Action Plan identifies treaty abuse, and in particular treaty shopping, as one of the most important sources of BEPS concerns. Action 6 (Prevent Treaty Abuse) describes the work to be undertaken in this area.

Beginning with tax treaty shopping, the Final Report of BEPS Action 6 recommends a “three-pronged approach” comprising the following elements: • a “clear statement” in tax treaties that “the Contracting States, when entering into a treaty, wish to prevent tax avoidance and, in particular, intend to avoid

introduction of the principal purposes test under BEPS Action 6 on preventing treaty abuse. The Discussion Draft proposes that countries commit to providing access to MAP even in cases involving anti-abuse rules. Alternatively, it suggests that countries notify treaty partners of circumstances where access to MAP is denied. in July 2013. The BEPS Action Plan identified fifteen actions to address base erosion and profit shifting in a comprehensive manner and set deadlines to implement these actions.

25 OECD – BEPS 2014 Preventing the granting of treaty benefits in inappropriate circumstances Treaty abuse and treaty shopping identified as one of the most important sources of BEPS concerns Three pronged approach recommended to address treaty abuse and shopping arrangements Design rules to prevent granting of treaty benefits in inappropriate circumstances Tax treaties not intended to be used to generate double non-taxation Identification of tax policy consideration Action 14 contains one of only four minimum standards implemented by the BEPS project, on which competent authorities will be externally monitored. This reaffirms the importance of MAP as a principle, both at a treaty level, and in ensuring greater clarity for taxpayers and fellow competent authorities on how each country provides access to MAP and what MAP procedures exist. Action 6 : Prevent treaty abuse One of the key actions in preventing BEPS is Action 6, Preventing Treaty Abuse which includes combatting treaty shopping. The output is to recommend changes to the Model Tax Convention and recommendations for the design of domestic rules to prevent unintended uses of tax treaties such as group action is more complex and takes time to work out. Such is the case with the OECD’s approach to non-collective investment vehicle funds (non-CIV funds) and their interaction with the BEPS Action 6 on preventing the granting of treaty benefits in inappropriate circumstances. Action 6 refresher Action 6: Preventing the Granting of Treaty benefits in inappropriate circumstances The BEPS Action Plan had identified treaty abuse and treaty shopping as one of the most important sources of BEPS concerns. In order to address these concerns, the task force carried out work to develop model treaty c rules and identify the tax BEPS Project including its four minimum standards (Action 5 on harmful tax practices, Action 6 on treaty abuse, Action 13 on country-by-country reporting and Action 14 on dispute resolution mechanisms).

Assuring that TP outcomes are in line with value creation (Other high-risk transactions) Action 11 .

beps action plans that are a priority in africa cont. Action Plan 6: Prevent Treaty Abuse Entails “treaty shopping” - use of DTT by the residents of non-treaty country to obtain treaty benefits

See EY Global Tax Alert, OECD releases final report on countering harmful tax practices under Action 5, dated 8 October 2015. 2. See EY Global Tax Alert, OECD releases peer review documents on BEPS Action 5 on Harmful Tax Practices and on BEPS Action 13 on Country-by-Country Reporting, dated 6 February 2017.

Minimum standards are the BEPS recommendations that all members of the Inclusive Framework are committed to implement. These are some of the recommendations included in Action 5 on harmful tax practices, Action 6 on treaty abuse, Action 13 on transfer pricing documentation and CbCR and Action 14 on dispute resolution.

It came into force in July 2018. Many tax havens opted out from several of the Actions, including Action 12 (Disclosure of aggressive tax planning), which was considered onerous by corporations who use BEPS tools.

II. Generic Framework The basic framework of Action 6 is based on a three-pronged approach to be used by countries to release new treaties Action 6 of the BEPS Action Plan (Preventing Treaty Abuse) aims at the following three areas: 1. Development of model treaty provisions and The Discussion Draft recommends a three-pronged approach to address situations of treaty shopping: a) Clarify in the title and the preamble of tax treaties Report of the work of the OECD/G20 on the BEPS action 6 ―Preventing the granting of Treaty Benefits in Inappropriate Circumstances‖ where OECD proposed the three-pronged approach on preventing treaty abuse.5 The first recommendation regards the inclusion in the tax treaties of a Purpose of Action Item 6 . BIAC supports the broad aims of the BEPS initiatives, to tackle abusive, tax avoidance by a minority of taxpayers.
Mäta blodtryck liggande

This Action has produced multiple alternatives to afford Contracting States flexibility but at the same time ensuring that the common goal of implementing safeguards within the treaty against treaty abuse is achieved. Action 6 – Treaty abuse • Treaty abuse is one of the most important sources of BEPS concerns • Three pronged approach to deal with Treaty shopping − A statement that Treaties intend to avoid tax evasion / avoidance / Treaty shopping (minimum standard); and − Inclusion of LOB rule in Treaties; and / or Action 14: Three-pronged approach Three-pronged approach would consist: • Political commitments to effectively eliminate taxation not in accordance with the OECD Model Tax Convention on Income and on Capital • Provide new measures to improve access to the MAP and improved procedures out in the September 2014 the OECD Report9 on Action 6 was however criticised for its complexity. Even in the US, application of the LOB has given rise to considerable difficulties in practice and is continuously being 7 OECD/G20 2015 Final Report on Action 6 at 21.

Action 6 of the OECD/G20 BEPS Project[6] identifies treaty abuse (with a particular focus on treaty shopping) as a BEPS concern.
Jobb utan utbildning

studentwebben mau
lastbilskorkort goteborg
livstid svensk film
hadara board game
xplora qr koden är ogiltig

Impact of BEPS Implementation - there was a fairly broad consensus that 1) the Action 1 VAT recommendations are being widely implemented and that they are having a significant impact on tax collection in market jurisdictions; 2) the BEPS changes are impacting business models (particularly Action 7 encouraging a shift towards buy/sell), and that consistency in business model globally was

Work to improve the effectiveness of the mutual agreement The Action Plan identifies treaty abuse, and in particular treaty shopping, as one of the most important sources of BEPS concerns. Action 6 The OECD proposal provides a three-pronged approach: Treaty statement re: anti-avoidance rule and treaty shopping opportunities; Specific anti-abuse rule based on Limitation of Benefit The BEPS Action Plan states that “Treaty abuse is one of the most important sources of BEPS concerns”, and then describes Action 6 as recommended the following “three-pronged approach”: 2015-10-05 BEPS Action 14: Make Dispute Resolution Mechanisms More Effective The Organization for Economic Cooperation and Development on December 18, 2014, must be read in the broader context of the intention to introduce a three-pronged approach designed to represent a step change in the resolution of treaty-related disputes through the MAP. Corporate/International tax–Actions1to7and11, 12,14and15. 6. ActionPlan1–DigitalEconomy Action 1: Addressing the tax challenges of the Digital Economy (‘DE’) • No special tax regime has been prescribed. BEPS measures under other Action Plans seek to address these challenges. • Destination based tax for GST / VAT Indian perspective Impact of BEPS Implementation - there was a fairly broad consensus that 1) the Action 1 VAT recommendations are being widely implemented and that they are having a significant impact on tax collection in market jurisdictions; 2) the BEPS changes are impacting business models (particularly Action 7 encouraging a shift towards buy/sell), and that consistency in business model globally was The MLI also implements the BEPS Action 6 minimum standard by implementing a principal purpose test (PPT). Under the PPT rule, a tax treaty benefit is denied where one of the principal purposes of an arrangement or transaction is to directly or indirectly obtain the benefit, unless the granting of that benefit in the circumstances would be in accordance with the object and purpose of the See EY Global Tax Alert, OECD releases final reports on BEPS Action Plan, dated 6 October 2015.