Secretary General Angel Gurría was speaking at the OECD's Paris headquarters at the signing by Jersey of a multilateral agreement for the automatic exchange of tax information as part of the OECD’s Base Erosion and Profit Shifting (BEPS) programme.
The Multilateral Competent Authority Agreement (MCAA), which has now been signed by 49 jurisdictions, sets the parameters for the automatic exchange of country-by-country tax reports on multinational enterprises. At the signing (on Friday 21 October), alongside Jersey's Chief Minister, Senator Ian Gorst, were representatives from Brazil, Latvia, and Guernsey and the Isle of Man.
Before the signing, Secretary General Gurría said that the OECD recognised Jersey's high level of compliance with international standards and highlighted Jersey's contribution to the work of the Global Forum, currently as a vice chair of the AEOI Working Group, and to Jersey’s leading position on transparency of beneficial ownership.
Jersey's involvement with BEPS
The purpose of BEPS is to ensure profits are taxed where the economic activity that generates the profits is carried out, and where value is created. It will help governments to prevent tax planning strategies that artificially shift profits to low or no-tax locations where there is little or no economic activity.
Jersey became a BEPS Associate on 16 June 2016 and is a member of the BEPS Inclusive Framework, which brings together 85 countries and jurisdictions – including G20 and EU Member States, as well as many developing countries.
The new regulations, which have yet to be ratified, impose a country-by-country reporting requirement on multinationals with an annual consolidated group revenue of €750m or more for accounting periods on or after 1 January 2016.
The draft legislation has been published on the States Assembly website and will be presented to the States Assembly for approval in December.