Panama joined the Inclusive Framework of the Base Erosion and Profit Shifting (BEPS) Project of the Organisation for Cooperation and Economic Development (OECD) on October 31, 2016.

Background

In October 2015, the OECD released final reports on all 15 focus areas in its Action Plan on BEPS.¹

To implement the actions efficiently and coherently, the OECD promoted an inclusive framework to which all interested jurisdictions were invited to participate.

The jurisdictions that join this inclusive framework participate as BEPS Associates in the Committee of Fiscal Affairs (CFA) of the OECD² and its auxiliary entities, on equal terms. The inclusive framework currently consists of 87 member jurisdictions, all of which will have a chance to intervene on equal terms in all of the CFA's meetings and its work teams on the BEPS project.

Member jurisdictions of the inclusive framework will be able to work alongside the OECD and G20 countries on developing standards on BEPS-related issues and the implementation of monitoring processes.

All member jurisdictions of the inclusive framework have committed to implementing the four minimum BEPS standards: (i) harmful tax practices (Action 5), (ii) treaty abuse (Action 6), (iii) country-by-country reporting (Action 13) and (iv) dispute resolution (Action 14).

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ENDNOTES

¹ See Tax Alert 2015-1899.

² The CFA is the body of the OECD responsible for fiscal policy-making.