This report summarises the legal and regulatory framework for transparency and exchange of information for tax purposes in Luxembourg.

Officials from revenue bodies, the banking sector and OECD met in Rome on 10-11 October to discuss ways to enhance the relationship between tax administrations and the banking industry and thus improve tax compliance.

The OECD invites public comments on proposed changes to the Commentary on Article 5 (Permanent Establishment) of the OCD Model Tax Convention.

High unemployment rates, in the wake of the financial and economic crisis, have governments scrambling to create jobs. A new OECD report suggests that well-targeted tax reforms can encourage employers to hire more people and the jobless to look for employment.

We no longer talk about commitments to change; today, we are making change happen. We are implementing the now universally accepted international standard of transparency and exchange of information, said OECD Secretary-General.

“Governments have signed more than 700 agreements to exchange tax information. These agreements have already yielded €14 billion in additional revenues, to 20 countries, from more than 100 000 tax payers who had hidden assets offshore.”

A report on bank secrecy and tackling tax evasion presented by OECD Secretary-General Angel Gurría to finance ministers at the Cannes G20 summit today.

Tax Transparency 2011: Report on Progress, a report prepared by the Global Forum on Transparency and Exchange of Information for Tax Purposes, was delivered to the G20 in Cannes and is now available to journalists.&

On 31 May 2011, the OECD Committee on Fiscal Affairs released for public comment a discussion draft on the application of the provisions of the OECD Model Tax Convention to the cross-border trading of emissions permits. The OECD has now published the comments received on this consultation draft.

Meeting with Business Representatives on definitional and ownership issues related to transfer pricing of intangibles: 7-9 November 2011

OECD countries acknowledge that taxes must play a role in the process of fiscal consolidation as they battle unprecedented budget deficits. In 2010, the majority of OECD governments have stabilised their tax to GDP, with the average ratio moving up slightly from 33.8% in 2009 to 33.9% in 2010.

Can both less income inequality and more growth be achieved? A recent OECD study sheds new light on the link between policies that boost growth and the distribution of income.

Public debt in the OECD area passed annual GDP in 2011 and is still rising. This paper was prepared for the Reserve Bank of India Second International Research Conference 2012: “Monetary Policy, Sovereign Debt and Financial Stability: The New Trilemma”, 1-2 February, 2012 in Mumbai, India

Public comments received on the proposed changes to the Commentary on Article 5 (Permanent Establishment) of the OECD Model Tax Convention.

Ms. Monica Bhatia has been appointed Head of the Secretariat of the Global Forum on Transparency and Exchange of Information for Tax Purposes. She will take up her duties on 1 April 2012.

Costa Rica has signed the Convention on Mutual Administrative Assistance in Tax Matters, a multilateral agreement developed jointly by the Council of Europe and the OECD that was opened for signature to all countries in June 2011.

The Global Forum on Transparency and Exchange of Information for Tax Purposes has just completed peer reviews of 11 jurisdictions. This brings to 70 the number of peer review reports completed since March 2010.

The average tax and social security burden on employment incomes increased in 26 out of 34 OECD countries in 2011 according to the new OECD Taxing Wages publication. Tax payers in Ireland, Luxembourg, Portugal and the Slovak Republic were among those hit with the largest increases.

Fighting unintended double non-taxation

Colombia and Mexico are a step closer to beneffiting from cross border tax co-operation and information sharing. Colombia has signed, and Mexico has deposited its instrument of ratification for the Multilateral Convention on Mutual Administrative Assistance in Tax Matters.

OECD releases a discussion draft on the revision of the Safe Harbours section of the Transfer Pricing Guidelines.

OECD Working Party No. 6 releases a discussion draft on the Transfer Pricing Aspects of Intangibles

The Global Forum Secretariat enters into a Memorandum of Understanding with the United Arab Emirates, confirming UAE’s commitment to the Global Forum’s work on transparency and exchange of information.

Today Argentina has deposited its instrument of ratification making Argentina the first country from South America to become a Party to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters and allowing it to benefit from cross border tax co-operation and information sharing.

Pakistan has joined the Global Forum on Transparency and Exchange of Information for Tax Purposes. As the 111th member of the Global Forum, it will participate in the peer review process which encourages all countries to adopt effective exchange of information in tax matters.

The OECD Committee on Fiscal Affairs invites public comments on a revised discussion draft on the meaning of “beneficial owner”, a term that is used in Articles 10, 11 and 12 of the OECD Model Tax Convention.

The OECD Committee on Fiscal Affairs invites public comments on a revised discussion draft on the definition of “permanent establishment” that is included in Article 5 of the OECD Model Tax Convention.

On 6 June 2012, the OECD released an invitation to comment on a discussion draft on the Transfer Pricing Aspects of Intangibles. The comments received in response to this invitation have been published. This edition replaces the previous edition released on 28 September 2012.

On 6 June 2012, the OECD released an invitation to comment on a discussion draft on the revision of the Safe Harbours Section in Chapter IV of the Transfer Pricing Guidelines. The comments received in response to this invitation have been published. This edition replaces the previous edition released on 28 September 2012.

On 6 June 2012, the OECD released an invitation to comment on a discussion draft on timing issues relating to transfer pricing. The comments received in response to this invitation have been published. This edition replaces the previous edition released on 28 September 2012.

Secretary-General Angel Gurría provided closing remarks at the first meeting of the OECD Global Forum on Value Added Tax (VAT) held in Paris. The meeting focused on designing efficient and equitable VAT systems and analyzing their impacts on international trade.

The OECD is currently developing International VAT/GST Guidelines to address issues of double taxation and unintended double non-taxation, and this work provides a unique basis for the creation of the future international standard for applying VAT to cross-border trade. This was the conclusion of delegates who participated in the inaugural meeting of the OECD Global Forum on VAT, in Paris on 7-8 November.

Tax revenues in Latin American countries are lower as a proportion of their national incomes than in most OECD countries, but are rising slowly. Revenue Statistics in Latin America shows that the average tax revenue to GDP ratio in the 15 Latin American countries covered by the report increased from 19% in 2009 to 19.4% in 2010, after falling from a high point of 19.7% in 2008.

On 12-14 November 2012, transfer pricing experts from governments met with private sector representatives to discuss the transfer pricing discussion drafts released on 6 June 2012. The agenda for the meeting, presentation material submitted by private sector participants, and a list of participants have now been published.

Invitation to attend the OECD-BIAC public briefing session on TRACE and FATCA

The amount of cross border portfolio investment exceeds 35 trillion USD. To encourage growth and cross-border investment more than 3000 tax treaties around the world based on the OECD Model reduce source taxation on a reciprocal basis.

On 19 October 2012, the OECD Committee on Fiscal Affairs released for public comment revised proposals concerning the meaning of “beneficial owner” in Articles 10, 11 and 12 of the OECD Model Tax Convention. The OECD has now published the comments received on this revised discussion draft.

On 19 October 2012, the OECD Committee on Fiscal Affairs released for public comment a revised discussion draft on tax treaty issues related to emissions permits and credits. The OECD has now published the comments received on this revised discussion draft.

On 19 October 2012, the OECD Committee on Fiscal Affairs released for public comment a revised discussion draft on the definition of “permanent establishment” (Article 5) of the OECD Model Tax Convention. The OECD has now published the comments received on this revised discussion draft.

The OECD has released a study to help all countries understand and address the risks of sales suppression software. It describes some of the most common electronic sales suppression techniques and shows how these methods can be detected by tax auditors. The report also considers the approaches already adopted by countries in combating this risk and highlights a number of best practices.

Azerbaijan and the Kingdom of Lesotho have joined the Global Forum on Transparency and Exchange of Information for Tax Purposes. As the 119th and 120th members of the Global Forum, they will participate in the peer review process which encourages all countries to adopt effective exchange of information in tax matters.

Albania has become the 43rd country to sign the Convention on Mutual Administrative Assistance in Tax Matters.

New data show that across OECD countries the average tax and social security burden on employment incomes increased by 0.1 of a percentage point to 35.6 per cent in 2012. It increased in 19 out of 34 countries, fell in 14, and remained unchanged in 1.

The Global Forum on Transparency and Exchange of Information for Tax Purposes (referred to as "the Global Forum"), has released its peer review reports for Belize, Finland, Iceland, Nauru, Poland, Portugal, Sweden and Turkey.

All of the world’s financial centres, under the impetus of the G20, and adopting the standards developed by the OECD, made a commitment in 2009 to putting an end to tax-motivated bank secrecy. Most of the countries have kept their word but major progress must still be made, said OECD Secretary-General.

The Global Forum is looking for a Tax Policy Analyst

The Steering Committee of the OECD Global Forum on Transfer Pricing publishes a Draft Handbook on Transfer Pricing Risk Assessment. This Handbook is intended to provide practical guidance to tax administrations in both OECD and non-OECD economies regarding the process of conducting transfer pricing risk assessments. Interested parties are invited to provide comments by 13 September 2013.

This fifth edition describes institutional setups, organisational arrangements and reforms, aspects of strategic management and human resource management, resources for tax administration, important areas of operational performance, the use of technology, and elements of the legislative and administrative framework for tax administration across the 52 economies covered by the series.

The OECD Council has approved the revision of Section E on safe harbours in Chapter IV of the Transfer Pricing Guidelines. New guidance provides opportunities for countries to relieve some compliance burdens and to provide greater certainty for cases involving smaller taxpayers or less complex transactions. It encourages the use of bilateral or multilateral safe harbours and provides sample MOUs to establish bilateral safe harbours.

As a further sign of international efforts to crack down on tax offenders, 12 more countries have signed, or committed to sign, the OECD’s Multilateral Convention on Mutual Administrative Assistance in Tax Matters. In addition, another 6 countries have ratified the Convention.