AS per the OECD, as a
key outcome of the work on BEPS Action 5 (Harmful Tax Practices), a framework
covering all rulings that could give rise to BEPS concerns in the absence of
compulsory spontaneous exchange has been agreed. The framework covers six categories
of rulings: (i) rulings related to preferential regimes; (ii) cross border
unilateral advance pricing arrangements (APAs) or other unilateral transfer
pricing rulings; (iii) rulings giving a downward adjustment to profits; (iv)
permanent establishment (PE) rulings; (v) conduit rulings; and (vi) any other
type of ruling where the FHTP agrees in the future that the absence of exchange
would give rise to BEPS concerns.
The ETR XML Schema provides the common IT-format for implementing the exchange
of tax rulings between Competent Authorities, as foreseen by Action 5. The
related ETR XML Schema User Guide further explains the information required
to be included in each data element to be reported. It also contains guidance
on how to make corrections of data element within a file.
IT-format
for Common Reporting Standard information
With the first exchanges under the Common Reporting Standard (CRS) for automatic
exchange of financial account information being scheduled for September 2017,
jurisdictions are now putting in place the required legislative, operational
and IT framework. From an IT perspective, jurisdictions will rely on the CRS
XML Schema, developed by the OECD as part of the CRS, for exchanging the information
with each other and, in many instances, to receive information from their Financial
Institutions.
As the information to be provided through the CRS XML Schema may contain errors,
caused by either an incorrect file preparation and/or by incomplete or inaccurate
record information, the OECD has now developed the CRS Status Message XML Schema,
as well as a User Guide setting out the practical guidelines for using the
XML Schema.
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