Critical evaluation of action 14 recommendations and the suggested way forward for Singapore

The final report on Action 14 of the Base Erosion and Profit Shifting (BEPS) project, Making Dispute Resolution Mechanisms More Effective presents a commitment by countries to implement certain “minimum standards” on dispute resolution. In many ways, Action 14 is the linchpin to the success of the e...

Full description

Saved in:
Bibliographic Details
Main Authors: CORONADO, Luis, VAN STADEN, Jerome
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2017
Subjects:
Online Access:https://ink.library.smu.edu.sg/soe_research/2389
https://ink.library.smu.edu.sg/context/soe_research/article/3388/viewcontent/SSRN_id2993468.pdf
Tags: Add Tag
No Tags, Be the first to tag this record!
Institution: Singapore Management University
Language: English
id sg-smu-ink.soe_research-3388
record_format dspace
spelling sg-smu-ink.soe_research-33882020-06-01T10:45:36Z Critical evaluation of action 14 recommendations and the suggested way forward for Singapore CORONADO, Luis VAN STADEN, Jerome The final report on Action 14 of the Base Erosion and Profit Shifting (BEPS) project, Making Dispute Resolution Mechanisms More Effective presents a commitment by countries to implement certain “minimum standards” on dispute resolution. In many ways, Action 14 is the linchpin to the success of the entire BEPS project. To implement the significant changes developed under the BEPS project and make certain that there is neither unintended double taxation nor double non-taxation, there must be a strong and effective mechanism in place when disputes do (inevitably) arise. While the goal of the BEPS project is to create a more cohesive international tax framework, it would be naïve to assume that governments will suddenly stop having disagreements over how a particular transaction should be taxed or how a treaty provision should be applied. Indeed, we could see more disputes if countries do not implement the BEPS recommendations in their domestic law in a broadly consistent manner. Therefore, it is of utmost importance that the implementation of the suggested BEPS proposals is complemented by a stronger and more efficient dispute resolution mechanism to ensure certainty for businesses. This research paper provides an overview of the existing Mutual Agreement Procedure (MAP) framework in Singapore and other selected Asian countries and the practical experiences around it. It also discusses the gap analysis for these countries (existing framework in these countries vis-a-vis the minimum standards and best practices prescribed under Action 14). The paper then focusses on the ‘mandatory arbitration’ as recommended under Action 14 including an overview of the already existing arbitration systems. This section also seeks to analyse the practical experience of arbitration in other countries and evaluates arbitration as an additional dispute resolution mechanism for Singapore. Finally, we analyse the implications of the multilateral instrument developed as part of Action 15 and the joint audit as an alternative dispute resolution mechanism. 2017-06-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/soe_research/2389 https://ink.library.smu.edu.sg/context/soe_research/article/3388/viewcontent/SSRN_id2993468.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Economics eng Institutional Knowledge at Singapore Management University Accounting Asian Studies
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Accounting
Asian Studies
spellingShingle Accounting
Asian Studies
CORONADO, Luis
VAN STADEN, Jerome
Critical evaluation of action 14 recommendations and the suggested way forward for Singapore
description The final report on Action 14 of the Base Erosion and Profit Shifting (BEPS) project, Making Dispute Resolution Mechanisms More Effective presents a commitment by countries to implement certain “minimum standards” on dispute resolution. In many ways, Action 14 is the linchpin to the success of the entire BEPS project. To implement the significant changes developed under the BEPS project and make certain that there is neither unintended double taxation nor double non-taxation, there must be a strong and effective mechanism in place when disputes do (inevitably) arise. While the goal of the BEPS project is to create a more cohesive international tax framework, it would be naïve to assume that governments will suddenly stop having disagreements over how a particular transaction should be taxed or how a treaty provision should be applied. Indeed, we could see more disputes if countries do not implement the BEPS recommendations in their domestic law in a broadly consistent manner. Therefore, it is of utmost importance that the implementation of the suggested BEPS proposals is complemented by a stronger and more efficient dispute resolution mechanism to ensure certainty for businesses. This research paper provides an overview of the existing Mutual Agreement Procedure (MAP) framework in Singapore and other selected Asian countries and the practical experiences around it. It also discusses the gap analysis for these countries (existing framework in these countries vis-a-vis the minimum standards and best practices prescribed under Action 14). The paper then focusses on the ‘mandatory arbitration’ as recommended under Action 14 including an overview of the already existing arbitration systems. This section also seeks to analyse the practical experience of arbitration in other countries and evaluates arbitration as an additional dispute resolution mechanism for Singapore. Finally, we analyse the implications of the multilateral instrument developed as part of Action 15 and the joint audit as an alternative dispute resolution mechanism.
format text
author CORONADO, Luis
VAN STADEN, Jerome
author_facet CORONADO, Luis
VAN STADEN, Jerome
author_sort CORONADO, Luis
title Critical evaluation of action 14 recommendations and the suggested way forward for Singapore
title_short Critical evaluation of action 14 recommendations and the suggested way forward for Singapore
title_full Critical evaluation of action 14 recommendations and the suggested way forward for Singapore
title_fullStr Critical evaluation of action 14 recommendations and the suggested way forward for Singapore
title_full_unstemmed Critical evaluation of action 14 recommendations and the suggested way forward for Singapore
title_sort critical evaluation of action 14 recommendations and the suggested way forward for singapore
publisher Institutional Knowledge at Singapore Management University
publishDate 2017
url https://ink.library.smu.edu.sg/soe_research/2389
https://ink.library.smu.edu.sg/context/soe_research/article/3388/viewcontent/SSRN_id2993468.pdf
_version_ 1770575308427100160