OECD – BEPS Action 14 on More Effective Dispute Resolution Mechanisms. PEER REVIEW DOCUMENTS. The Action Plan on Base Erosion and Profit Shifting (“BEPS Action Plan”)1 identified 15 actions to address BEPS in a comprehensive manner. Recognising that the actions to counter BEPS must be complemented with actions that ensure certainty for taxpayers, Action 14 calls for effective dispute resolution mechanisms. In October 2015, the G20 Finance Ministers endorsed the BEPS package2 which includes the report on Action 14: Making Dispute Resolution Mechanisms More Effective3 (“the 2015 Action 14 Report”). This report contains a commitment by countries to implement a minimum standard to ensure that they resolve treaty-related disputes in a timely, effective and efficient manner. All members of the inclusive framework on BEPS4 (“Members”) commit to the implementation of the Action 14 minimum standard and to have their implementation reviewed pursuant to the Terms of Reference and Assessment Methodology agreed by Members. This compilation contains four documents, namely (i) the Terms of Reference; (ii) the Assessment Methodology; (iii) the Mutual Agreement Procedure (MAP) Statistics Reporting Framework; and (iv) the Guidance on Specific Information and Documentation Required to be Submitted with a Request for MAP Assistance. The Terms of Reference translate the Action 14 minimum standard into 21 elements. These elements are complemented by 12 best practices. The best practices are not part of the minimum standard and thus will not affect the assessment of Members. The Terms of Reference assess a Member’s legal and administrative framework, including the practical implementation of this framework to determine how its MAP regime performs relative to the 21 elements in the following four key areas – (A) preventing disputes; (B) availability and access to MAP; (C) resolution of MAP cases; and (D) implementation of MAP agreements. The Assessment Methodology establishes detailed procedures and guidelines for a two-stage approach to the peer review and monitoring process. Stage 1 involves the review of a Member’s implementation of the minimum standard based on its legal framework for MAP and the application of this framework in practice. Stage 2 involves the review of the measures taken by the Member to address any shortcomings identified in its Stage 1 Peer Review. The commitment by Members to implement the Action 14 minimum standard includes a commitment to provide timely and complete reporting of MAP statistics pursuant to an agreed reporting framework. The MAP Statistics Reporting Framework reflects a collaborative approach for the resolution of MAP cases through the adoption of common timeline for both competent authorities to resolve MAP cases. With effect from reporting period 2016, Members will report MAP statistics based on common definitions of terms, common rules on counting of MAP cases; and common reporting of MAP outcomes based on different categories of outcomes. The Action 14 minimum standard also requires Members to publish MAP guidance that identify the specific information and documentation that a taxpayer is required to submit with a request for MAP assistance. Members should not limit access to MAP based on the argument that insufficient information was provided if the taxpayer has provided the required information. The Guidance on Specific Information and Documentation Required to be Submitted with a Request for MAP Assistance could be used by Members in drawing up their own MAP guidance and could also provide guidance to taxpayers in their preparation of a MAP submission.
OECD (2016), BEPS Action 14 on More Effective Dispute Resolution Mechanisms – Peer Review Documents,
OECD/G20 Base Erosion and Profit Shifting Project, OECD, Paris. www.oecd.org/tax/beps/bepsaction-14-on-more-effective-dispute-resolution-mechanisms-peer-review-documents.pdf
