BEPS Action Plan: Action 12 – Disclosure of aggressive tax planning

The OECD is aiming to require taxpayers to disclose aggressive tax planning arrangements. Action 12 of the BEPS Action Plan targets this objective. Below, we provide commentary and links to content around this important action point.




2 September 2013

We support targeted transparency in this area. Experience of tax planning disclosure requirements (e.g., UK, US) suggests care is needed to make sure …

they are suitably focused to avoid disproportionate levels of reporting (for both business/advisers and tax administrations) and unnecessary costs. 

This seems to be the arena where it will be easier to find consensus at the international level, particularly bearing in mind the work in this area carried out by the OECD in the past. Best practice has been established by those with current disclosure regimes and the modular approach recommended will allow them to comply with any new standard with minimal changes.


19 July 2013

Domestic ‘disclosure initiatives’ to require the reporting of arrangements largely set up to deliver a ‘tax benefit’ (to be widely defined) will be encouraged …

by reference to best practice and existing experience where jurisdictions already have such regimes. The ‘modular approach’ to be recommended will mean that jurisdictions will be able to keep any existing measures, but add to them if desired. The more real-time relationships established in a number of countries, following the OECD’s project on cooperative compliance as reported in our October 2012 Bulletin, are identified as ‘useful measures’ to help taxpayers with such reporting.

There will be a particular focus on international tax schemes and on sharing such information between jurisdictions. This is no doubt seeking to build on the relatively successful work of the Joint International Tax Shelter Information Centre (JITSIC) which has operated since 2004, and which has more recently included participation by the US, UK, Canada, Australia, Japan and China.

These reporting regimes are expected to be operational — with information sharing taking place — within two years.

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