Daily Tax Update - June 8, 2015: OECD Releases Guidance on Implementation of Country-by-Country Reporting

OECD Releases Guidance on Implementation of Country-by-Country Reporting:  Today, in response to Action 13 of the Base Erosion and Profit Shifting (BEPS) Action Plan, the OECD released guidance on implementing country-by-country reporting.  The guidance consists of (1) model legislation which could be used by countries to require the ultimate parent entity of a multinational group to file the country-by-country report in its jurisdiction of residence, including backup filing requirements, and (2) three model competent authority agreements that could be used to facilitate implementation of the exchange of country-by-country reports.  Country-by-country reporting requirements are intended to enhance transparency for tax administrations by providing them with adequate information to assess high-level transfer pricing and other BEPS-related risks. 

European Commission Orders Estonia and Poland to Provide Details on Tax Ruling Practices and Requests Specific Tax Rulings from 15 Member States:  Today, the European Commission issued injunctions ordering Estonia and Poland to provide long-overdue information about their tax ruling practices.  According to a press release, the European Commission is seeking information on the tax ruling practices of all of its Member States as part of an inquiry “aimed at clarifying allegations that tax rulings may constitute state aid.”  Estonia and Poland are the only EU countries that have failed to respond to the European Commission’s original request for information.

The European Commission also announced today that it will ask 15 Member States, including France, Germany, and Italy, “to provide a substantial number of individual tax rulings.”  According to Margrethe Vestager, the EU’s antitrust chief, the EU Commission wants to analyze the individual tax rulings “carefully to find out whether Member States employ tax rulings to grant companies selective tax advantages that breach EU state aid rules.”

Miscellaneous Guidance:
Revenue Procedure 2015-36, which modifies and supersedes Revenue Procedure 2011-49, sets forth the procedures for issuing opinion and advisory letters regarding the acceptability under sections 401, 403(a), and 4975(e)(7) of the form of pre-approved plans.