On 14 April 2022 the OECD published a further set of peer review reports under BEPS Action 14 which is concerned with making tax dispute resolution mechanisms more effective. These reports set out the results of assessments under stage two of the peer reviews, which assess the extent to which countries have implemented the recommendations made following the stage one peer reviews.

Countries that are members of the OECD’s Inclusive Framework are monitored by the peer review process to assess compliance with the minimum standards. The minimum standard under BEPS action 14 is based on criteria that are evidence of progress in improving the resolution of tax-related disputes between jurisdictions.

The latest peer review reports relate to Andorra, Bahamas, Bermuda, British Virgin Islands, Cayman Islands, Faroe Islands, Macau (China), Morocco and Tunisia. The reports cover developments in the period from 1 September 2019 to 30 April 2021.

The reports note that Andorra, Morocco and Tunisia have already signed the multilateral instrument (MLI) to implement tax treaty related BEPS provisions into their bilateral tax treaties. The MLI has also being ratified by Andorra. Signing the MLI allows many of their tax treaties to be amended in line with the Action 14 minimum standard, and where treaties are not covered by the MLI there are bilateral negotiations either ongoing or concluded.

The reports indicate that the Bahamas, Bermuda, British Virgin Islands, Cayman Islands, Faroe Islands, Macau (China), Morocco and Tunisia now have a documented bilateral notification and consultation process that is applicable if a taxpayer’s objection is considered by the competent authority as being not justified.

The reports indicate that Andorra, Bahamas, Bermuda, British Virgin Islands, Cayman Islands and Macau (China) have no experience with the mutual agreement procedure (MAP). The Faroe Islands closed MAP cases on average within a period of 24 months, which is the targeted maximum duration.

The peer review reports for Andorra, Macau (China) and Tunisia indicate that these countries ensure that MAP agreements can always be implemented notwithstanding domestic time limits. The reports note that Bermuda, Faroe Islands, Macau (China), Morocco and Tunisia have issued or updated their MAP guidance.

The OECD notes that it has now published 82 Stage 1 peer review reports and 69 Stage 1 and Stage 2 peer monitoring reports. The tenth and final batch of Stage 2 reports is to be published in a few months.