How Tax Administrations Cooperate and Exchange Information
We focused on international developments related to the base erosion and profit shifting (BEPS) and transfer pricing with an aim to combat international tax avoidance. We discussed the recommendations from the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes, Common Reporting Standard, and looked at advance pricing agreements and mutual agreement procedures.
How you have benefited
We addressed the challenges for taxpayers and tax administrations in the context of the growing mismatch between national powers in a globalized economy and instruments – bilateral and multilateral – at the reach of tax administrations to bridge the gap. Amongst them the Convention on Mutual Administrative Assistance in Tax Matters stands out. It was developed jointly by the OECD and the Council of Europe in 1988 (and amended in 2010) to make it a truly global instrument. We highlighted the importance of this most comprehensive multilateral instrument available nowadays for all forms of tax co-operation to tackle tax evasion and avoidance providing for all forms of administrative co-operation in the assessment and collection of taxes, ranging from exchange of information, automatic exchanges, to the recovery of foreign tax claims.
By the end of the learning initiative the participants gained an understanding how to::
- Identify the compliance challenges posed by globalization, in particular for multinational enterprises and wealthy individuals
- Discuss various elements large corporations need to balance when designing and implementing a strategic approach to tax risk, including the appetite for tax risk, reputational issues, corporate governance, cooperative-compliance type of arrangements, Advance Pricing Agreements, rulings
- Improve understanding of the legal, administrative and technological arrangements, bilateral and multilateral to facilitate tax administration cooperation beyond borders
- Better understand BEPS Action 13 (Country-by-Country Reporting)
- Discuss the international standard on exchange of information on request as applied by Global Forum on Transparency and Exchange of Information for Tax Purposes,
- Discuss in depth the Common Reporting Standards
- Explore how tax administrations cooperate together to identify tax risks across borders through Joint International Taskforce on Shared Intelligence and Collaboration (JITSIC)
What you have learned
We addressed the OECD’s Global Relations Program on Taxation whose primary objective is to promote domestic resource mobilization to enable countries secure their tax bases, promote the flow of foreign direct investment and ultimately achieve the Sustainable Development Goals. The program engages OECD and non-OECD economies in a policy dialogue to promote the development and use of good practices in the tax policy and administration areas.
In recent times the world economy has been increasingly internationalized, with markets for goods and services spanning across borders, means of production being affected to Global Value Chains, increased competition, financial systems operating round the clock globally, and technological advances leading to further innovation which multiplies the process, giving rise to an increasing interdependency and uniformity of national markets.
In this context, multinational corporations and a sizeable number of individuals are operating in a globalized economy. The mobility of capital is higher than ever before and even workers move across borders to perform their functions, or to move to a new job. The workshop provided a deeper understanding of the challenges for taxpayers as they may be simultaneously subject to two or more tax systems, resulting in higher compliance costs and an increased exposure to tax risks.
The workshop was designed for mid to senior level tax officials with responsibilities to plan and control tax administration performance, competent authority or international liaison units, and officials from ministries of finance in charge of international matters. Participants were encouraged to share their experiences and country practices.
No fee was charged for officials working in the public sector. The costs of travel and accommodation were covered by the participants or their sponsoring institution. Meals and refreshments were provided during the event.
Please see General Information on Learning at the CEF.
Marjetka Štemberger, Ministry of Finance, Slovenia
Marjetka is a master of laws and works at the Directorate for tax system, customs and other public finance revenues. Her area of expertise is international taxation cooperation.
Dalibor Legac, Head of Department for Avoidance of Double Taxation, Tax Administration of Croatia
Matej Ocvirk, Senior Advisor Coordinator for Exchange of Information, Tax Administration of Croatia
Željko Martinović, Senior Tax Advisor - Specialist, Tax Administration of Croatia
Ubaldo González de Frutos, OECD Secretariat
Ubaldo is an international tax lawyer. Since 2010 he has been involved as a policy advisor to developing countries in tax policy and administration matters. He also manages the OECD Global Relations Program on Taxation.
Ana Rodriguez Calderon, OECD Secretariat
Born in Costa Rica, Ana is a tax lawyer with extensive international experience. She has advised the Costa Rican government in international tax matters. In 2015, she joined the Global forum on Transparency and Exchange of Information Secretariat. Currently, she manages the OECD’s Global Relations Program.
Anne Margaret Gormley, Irish Revenue Commissioners
Anne Margaret is the Assistant Director in the Exchange of Information Branch of the International Division, Office of the Revenue Commissioners, Ireland.
Susana Escobar, Tax Norway
Susana is a Senior Tax Inspector at the International Department for the Norwegian Tax Authority – Region East, assigned mainly to risk analysis and audits of large business, with a focus on cross-border transactions. She has extensive previous experience from private audit and as tax manager for the Norwegian subsidiary of a large international corporation.
This learning initiative was supported by: