On 23 December 2019 the OECD released the 2018 peer review reports on the exchange of information on tax rulings. The reports cover implementation of the minimum standard under action 5 of the OECD action plan on base erosion and profit shifting (BEPS) in the period from 1 January to 31 December 2018. The reports cover 112 jurisdictions, 20 of which have been reviewed for the first time.

The reviews were prepared with information from each jurisdiction under review; input from jurisdictions that received exchanges of information under the transparency framework; and input from the Forum on Harmful Tax Practices.

The minimum standard on the compulsory spontaneous exchange of information on tax rulings under BEPS action 5 ensures that tax administrations are supplied with timely information on any tax rulings that have been given in relation to a foreign related party of a taxpayer or permanent establishment that is resident in the relevant jurisdiction. The information can be used by the tax administration to conduct risk assessments.   

The exchanges of tax information are carried out under agreements on the exchange of tax information, which contain provisions to ensure taxpayer confidentiality. 

Almost 30,000 exchanges of tax information had taken place by 31 December 2018, of which around 9,000 exchanges of information were carried out during 2018. Most of the jurisdictions under review have already begun implementing the necessary legal framework for spontaneous exchange of information on rulings. The OECD report includes 96 recommendations for improvement of the process of information exchange by jurisdictions reviewed and they are taking action to implement the recommendations. The report includes 14 recommendations made to OECD and G20 jurisdictions that are being issued for the third time owing to a lack of implementation. The report is therefore encouraging the relevant jurisdictions to take action and is offering support where needed.

So far peer reviews on the exchange of information on tax rulings have taken place in 2017, 2018 and 2019, and the fourth annual review will go ahead in 2020. Any further reviews after 2020 will need to be agreed by member countries of the Inclusive Framework on BEPS. Discussions on the rulings standard, and the process for any further peer reviews will take place in 2020.