Six countries, India, China, Israel, New Zealand, Canada and Iceland, signed a Multilateral Competent Authority agreement for the automatic exchange to boost transparency by multinational enterprises (MNEs).
Agreement signed in Beijing on 12 May 2016.
Key Points:
• The pact allows all signatories to bilaterally and automatically exchange Country-by-Country Reports ("CbC MCAA") with each other, as contemplated by Action 13 of the BEPS Action Plan.
• It will help ensure that tax administrations obtain a complete understanding of how MNEs structure their operations, while also ensuring that the confidentiality of such information is safeguarded.
• The OECD/G20 BEPS Project set out 15 key actions to reform the international tax framework and ensure that profits are reported where economic activities are carried out and value created.
• It will also cover information about which entities do business in a particular jurisdiction and the business activities each entity engages in.
The signed package was a result of more than two years of discussions involving all OECD and G20 countries. The discussions also included more than a dozen developing countries.
