INTERNATIONAL TAX PLAZA - The OECD releases the 2020 Peer Review Reports on the Exchange of Information on Tax Rulings

On December 14, 2021 the OECD/G20 Inclusive Framework on BEPS released the 2020 Peer Review Reports on the Exchange of Information on Tax Rulings (Inclusive Framework on BEPS: Action 5). The report contains the 2020 peer review assessments of 131 jurisdictions in relation to the spontaneous exchanges of information on tax rulings.

Key findings from this fifth annual peer review include:

· As at 31 December 2020, almost 22,000 tax rulings in the scope of the transparency framework had been issued by the jurisdictions being reviewed. This is the cumulative figure, including certain past rulings issued since 2010. Over 1,700 tax rulings in scope of the transparency framework were issued in 2020 by the 131 jurisdictions reviewed.

· Over 41,000 exchanges of information took place by 31 December 2020, with approximately 5,000 exchanges undertaken in 2020, 7,000 exchanges undertaken during 2019, 9,000 exchanges undertaken during 2018, 14,000 exchanges undertaken during 2017 and 6,000 exchanges during 2016.

· Out of the 131 reviewed jurisdictions, 95 jurisdictions did not receive any recommendations, as they have met all the terms of reference. A further 10 jurisdictions received only one recommendation.

· 66 recommendations for improvement have been made for the year in review.

· 91 peer input questionnaires were submitted providing feedback on the conduct of the exchanges by Inclusive Framework members. Peer input is not mandatory, but in cases where it was provided it has in a number of cases allowed jurisdictions to revise their processes and improve the clarity and quality of information exchanged.

· In a number of cases, the peer review process has assisted jurisdictions in identifying areas where improvement is required, and jurisdictions have been able to take action to implement changes over 2021 while the peer review was ongoing. Where these changes were implemented in 2021, they are generally not taken into account in the recommendations issued for the year 2020. However, these changes would be reviewed in a subsequent peer review.

Click here to be forwarded to the 2020 Peer Review Reports on the Exchange of Information on Tax Rulings (Inclusive Framework on BEPS: Action 5) as available on the website of the OECD.

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