Daily Tax Update - November 17, 2014: G20 Leaders Praise Progress on BEPS, Endorse Automatic Exchange of Tax Information

G20 Leaders Praise Progress on BEPS, Endorse Automatic Exchange of Tax Information:  The G20 leaders meeting in Brisbane, Australia issued a communiqué praising progress on the Base Erosion and Profit Shifting (BEPS) Action Plan and affirming their commitment to finalizing the work in 2015.  The leaders also endorsed the global common reporting standard for the automatic exchange of tax information.  They anticipate beginning to exchange information automatically with each other and with other countries by 2017 or 2018, subject to completing necessary legislative procedures. 

The G20 leaders committed to improving the transparency of beneficial ownership.  The leaders endorsed a set of ten principles on the transparency of beneficial ownership of legal persons and arrangements.  They also released a proposed structured dialogue process for working with developing countries and the OECD Secretary General Report to the G20 Leaders.

Philippines Joins OECD Committee on Fiscal Affairs:  The Philippines Department of Finance announced that it will join the OECD’s Committee on Fiscal Affairs in January 2015.  It stated that it will “use its seat to present developing country perspectives and priorities, as well as shape strategies, tools, and other outputs to curb the global BEPS phenomenon.”

IRS Issues Correction to FATCA Withholding Regulations:  Today, the IRS and Treasury issued a correction to the temporary regulations addressing information reporting by foreign financial institutions and withholding on certain payments to foreign financial institutions and other foreign entities.  The correction amends the provision regarding the special determination date and timing for reporting with respect to the 2014 calendar year.