Philip Kerfs, tackling tax evasion and avoidance facts & figures, OECD

Tackling Tax evasion and avoidance: facts and figures

Post-Growth 2018 conference 19 September 2018 Philip Kerfs, OECD

TACKLING TAX EVASION

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Tackling tax evasion EOI on request

About 4,500 new EOI relationships in line with international standards have been established since 2009 (+280%).

Significant improvement in the number and quality of EOI requests and the timeliness of responses.

Tackling tax evasion Automatic exchange of financial account information

Over 100 jurisdictions will have started exchanges by the end of September 2018

TAX AVOIDANCE

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BEPS Implementation The path to date

Release of first seven deliverables, agreed by consensus by all OECD and G20 countries. Welcomed by G20 Leaders (November 2014).

OECD releases report Addressing Base Erosion and Profit Shifting. Welcomed by G20 Finance Ministers which call for an Action Plan.

Sep. Sep. 2014 2014

Feb. Feb. 2013 2013

June June 2012 2012 G20 Leaders request the OECD to identify the key issues that lead to BEPS.

G20 Leaders endorsed BEPS package and call for an inclusive framework to monitor the implementation of the BEPS project.

July July 2013 2013 OECD releases Action Plan.

Endorsed by G20 Finance Ministers (July 2013) and G20 Leaders (September 2013).

116 jurisdictions participate in the inclusive framework.

78 jurisdictions have signed the BEPS Multilateral Convention.

Nov. Nov. 2015 2015

Oct. Oct. 2015 2015 Release of all deliverables, agreed by consensus by all OECD and G20 countries.

Jan. Jan. 2018 2018

June June 2016 2016

June June 2018 2018

1st meeting of the inclusive framework in Kyoto, Japan.

More than 80 jurisdictions.

Plenary meeting of the inclusive framework in Lima, Peru

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BEPS Action Plan Different mechanisms to implement BEPS recommendations

Minimum standards Action 5

MINIMUM STANDARD

Counter harmful tax practices Action 6

MINIMUM STANDARD

Prevent treaty abuse Action 13

MINIMUM STANDARD

Country-by-Country Reporting Action 14

MINIMUM STANDARD

Effective dispute resolution

Reinforced international standards

Common approaches & best practices

Analytical reports & measuring BEPS

Action 7

Action 2

Action 1

Prevent the artificial avoidance of PE status Actions 8 - 10 Align transfer pricing outcomes with value creation: intangibles; risk and capital; and other high-risk transactions

Neutralise the effects of hybrid mismatch arrangements Action 3 Strengthen CFC rules

Address tax challenges of the digital economy Action 11 Measure and monitor BEPS Action 15

Action 4 Address BEPS involving interest and payments equivalent to interest

Develop a multilateral instrument

Action 12 Mandatory disclosure rules 7

BEPS is going wider‌ 117 members of the OECD Inclusive Framework on BEPS

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This map is included without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.

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‌and BEPS is delivering Action 5 - FHTP regime reviews

All regimes (175) - results as at 9 May 2018 1

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31

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Harmful (3)

3

20

Potentially harmful (1) Abolished (12)

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Amended (3) In the process of being eliminated / amended (81) 38

Not harmful (38) 81

Potentially harmful but not actually harmful (4) Out of scope (20) Disadvantaged area (1) Under review (12) 9

‌and BEPS is delivering Actions 6/15 – Multilateral instrument

83 jurisdictions covered by the MLI, 10 have ratified This map is included without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.

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…and BEPS is delivering Action 13 – Country-by-country reporting

Filing of CbC reports

Exchange of CbC reports

• In 2016, 57 jurisdictions required or allowed CbCR filing

• First exchanges of CbC reports in June 2018

• These include UPE jurisdictions of substantially all MNE groups above the revenue threshold • In total, around 70 jurisdictions now have a filing obligation (including after 2016) • c.15 more jurisdictions have legislation close to final

• 1700+ exchange relationships have been activated, between • 72 signatories to MCAA • 28 EU Member States • Bilateral QCAAs incl. >35 with the US • A small number of jurisdictions encountered delays, that are being addressed

• 20+ have commenced implementation and are at an early stage

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NEXT STEPS

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Looking forward

• Exchange of information • Development of peer review process • Effective use of exchanged information • Addressing CRS Avoidance arrangements • BEPS implementation • Digital Economy • Tax certainty

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Additional information

www.oecd.org/tax/ Questions and comments: Philip.KERFS@oecd.org

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