OECD public consultation on Transfer Pricing Documentation and Country-by-Country Reporting OECD Conference Centre, Paris 19 May 2014 Other Discussion Draft Topics Effective dates of the guidance / implementation Laurence Delorme

Background Develop rules regarding TP documentation to enhance transparency for tax administrations, taking into consideration the compliance costs for business. The rules to be developed will include a requirement that MNEs provide all relevant governments with needed information on their global allocation of income, economic activity and taxes paid among countries according to a common template 19 May 2014A3F Association Française des Femmes Fiscalistes2 BEPS Action 13 REVISED CHAPTER V OF OECD TPG Two-tiered TP documentation framework: Masterfile + Local File COUNTRY-BY-COUNTRY REPORTING TEMPLATE Proposed Tools 30 January 2014 DD on TP documentation & CbC R (+ webcast 2 April 2014) HIGH LEVEL TP RISK ASSESSMENT (TPRA) TOOL FOR TAX ADMINISTRATIONS Stated Purpose Guidance for tax administrations to take into account in developing rules and/or procedures on TP documentation (TP risk assessment, TP enquiries and audits) Guidance to assist taxpayers in identifying documentation most helpful in establishing compliance with ALP On-going OECD work on TP Risk Assessment (Draft Handbook 30 April 2013), and work with and through the FTA on Co-operative compliance (May 2013) Introductory comments to BEPS Action Plan: The actions implemented to counter BEPS cannot succeed without further transparency, nor without certainty and predictability for business.

BEPS Action 13: Enhance transparency / simplify compliance & reduce costs Effective dates: critical success factors for business 19 May 2014A3F Association Française des Femmes Fiscalistes3 Country-by-Country Reporting Template HIGH LEVEL TP RISK ASSESSMENT TOOL Revised Chap. V of OECD TPG Two-tiered TPD framework (Masterfile & Local File) Effective TP Risk Assessment (TPRA) and auditing without increased burden on business requires finalizing the risk assessment approach (Handbook on TP Risk Assessment) before finalizing the tools under BEPS action 13. Need for mechanism through which TPD compliance burden is reduced for taxpayer identified as low risk after TPRA performed by tax authorities CbCR template to be finalized after all other BEPS actions are completed, i.e. not before Sept 2015, and need to provide ample time for business to make the necessary changes (systems, reporting standards, operations, etc) to comply. Common, standard OECD framework for TPD must be consistently enacted and applied across jurisdictions => consensus necessary across OECD MS & G20 countries before revised Chap. V is published New TPD and CbCR not to be adopted without/before a formal and binding commitment from all countries involved in the BEPS-work to provide timely and binding dispute resolution mechanisms which will fully safeguard taxpayers from double taxation (BEPS action 14 Changes to the Model Tax Convention and action 15 Develop a multilateral instrument - deadlines Sept 2015 ) Stability over time of CbCR template, and of TPD framework under revised Chapter V OECD TPG BEPS project provides political backing for requiring countries to adopt in their national rules or through a multilateral instrument one global, consistent and streamlined standard

Proposed timeframe for date of effect (first year being documented) 19 May 2014A3F Association Française des Femmes Fiscalistes4 CbCR templateMasterfileLocal Files Year NYear N+1 Year N+2 Date of effect = first year being documented 1 to 2 years to come into full compliance, before authorities may apply penalties. Phased roll-out of the new guidance, beginning with the CbC Report CbCR template and rules surrounding TPD must be uniform across countries => single commencement date for all countries adopting the requirements, and only after all, or a certain number, of the BEPS countries have agreed to the revised documentation and reporting standards => OECD to provide clear guidance to tax administrations that they should NOT add to the information required under CbCR, Masterfile or Local File OECD Revised Chap V should outline timeline for implementation of new TPD standard framework, providing taxpayers sufficient time to make the necessary changes to comply. => transition rules as taxpayers move from one standard to the other (grandfathering) => optional faster implementation where business is ready