The OECD has released a revised discussion draft which includes proposals on how to deal with the follow-up work on Action 6 designed to prevent treaty abuse of the proposed new rules on Base Erosion and Profit Shifting (BEPS)
This discussion draft on Action 6 reflects the conclusions and proposals that resulted from discussion meetings held in March.
Part 1 reflects the outcome of the discussion of a new proposal for an alternative 'simplified' limitation-on-benefits (LOB) rule and on how the LOB rule should be presented in the OECD Model Tax Convention.
Part 2 presents the outcome of the discussion of each of the 20 issues for follow-up work that were identified in the discussion draft of 21 November 2014, including new proposals for treaty rules intended to address concerns related to special tax regimes and to changes to domestic law made after the conclusion of a treaty.
The discussion draft and feedback will be discussed at the Working Party 1 meeting of 22-26 June 2015, when the Working Party will be asked to produce a final version of the Report on Action 6 that will take into account the conclusions of the follow-up work done on the issues identified in the November 2014 discussion draft.
Comments should be kept as short as possible: this is the third discussion draft related to Action 6 and extensive comments have already been sent on the different proposals resulting from the work on that part of the BEPS Action Plan. For the same reason, no public consultation meeting will be held on the proposals included in this new discussion draft and all comments will be made publicly available.
The closing date for comment is 17 June 2015 and should be sent by email to [email protected] in Word format. They should be addressed to Marlies de Ruiter, head, tax treaties, transfer pricing and financial transactions division, OECD/CTPA.
The revised discussion draft is available here http://www.oecd.org/tax/treaties/revised-discussion-draft-beps-action-6-prevent-treaty-abuse.pdf
