The OECD has announced the release of the stage 2 peer review reports on dispute resolution under BEPS Action 14 for Aruba, Bahrain, Barbados, Gibraltar, Greenland, Kazakhstan, Oman, Qatar, Saint Kitts and Nevis, Thailand, Trinidad and Tobago, United Arab Emirates, and Vietnam.

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Making tax dispute resolution more effective: New peer review assessments for Aruba, Bahrain, Barbados, Gibraltar, Greenland, Kazakhstan, Oman, Qatar, Saint Kitts and Nevis, Thailand, Trinidad and Tobago, United Arab Emirates and Viet Nam

13/09/2022 - Under BEPS Action 14, jurisdictions have committed to implement a minimum standard to improve the resolution of tax-related disputes between jurisdictions. Despite the significant disruption caused by the ongoing COVID-19 pandemic and the necessity to hold all meetings virtually, work has continued with the release today of the Stage 2 peer review monitoring reports for Aruba, Bahrain, Barbados, Gibraltar, Greenland, Kazakhstan, Oman, Qatar, Saint Kitts and Nevis, Thailand, Trinidad and Tobago, United Arab Emirates and Viet Nam.

These reports evaluate the progress made by these 13 jurisdictions in implementing any recommendations resulting from their Stage 1 peer review. They take into account any developments in the period 1 January 2020 – 31 October 2021 and build on the Mutual Agreement Procedure (MAP) statistics for 2016-2020.

The results from the peer review and peer monitoring process demonstrate positive changes across all 13 jurisdictions, although not all show the same level of progress. Highlights include:

• The Multilateral Instrument was signed by Bahrain, Barbados, Kazakhstan, Oman, Qatar, Thailand, United Arab Emirates and Viet Nam, with the instrument already being ratified by Bahrain, Barbados, Kazakhstan, Oman, Qatar, Thailand and United Arab Emirates, which will bring a substantial number of their treaties in line with the Action 14 minimum standard. In addition, there are bilateral negotiations either ongoing or concluded.
• Aruba, Bahrain, Gibraltar, Greenland, Qatar, Thailand and United Arab Emirates now have a documented bilateral notification/consultation process that they apply in cases where an objection is considered as being not justified by their competent authority.
• Barbados, Greenland, Oman, Qatar, Thailand and Viet Nam have added more personnel to the competent authority function and/or have made organisational improvements with a view to handle MAP cases in a more timely, effective and efficient manner.
• Aruba, Barbados, Qatar, Thailand, United Arab Emirates and Viet Nam closed MAP cases within the pursued average time of 24 months, whereas Bahrain, Gibraltar and Saint Kitts and Nevis had no MAP experience.
• Bahrain, Gibraltar, Kazakhstan, Oman, Qatar, Trinidad and Tobago and United Arab Emirates ensure that MAP agreements can always be implemented notwithstanding domestic time limits.
• Aruba, Bahrain, Barbados, Gibraltar, Oman, Qatar, Saint Kitts and Nevis, Thailand and United Arab Emirates have issued or updated their MAP guidance.

The OECD has published, in total, 82 Stage 1 peer review and Stage 2 peer monitoring reports in all batches in accordance with the Action 14 peer review assessment schedule. With this, the Action 14 peer review process for all reviewed jurisdictions under the current Assessment Methodology has been completed.

More information on the BEPS Action 14 Mutual Agreement Procedure can be found at https://oe.cd/bepsaction14