On September 27, Minister of Finance Oleksandr Danyliuk met with representatives of the Organization for Economic Cooperation and Development (OECD) to discuss the implementation progress of the BEPS Action Plan (Base Erosion and Profit Shifting) and Ukraine’s participation in the automatic exchange of financial account information (the AEOI Standard).
This on-site visit launched the first joint induction programme for the implementation of the international standards on exchange of information and of the BEPS measures. The program will assist Ukraine to implement new international tax standards with a focus on Country-by-Country Reporting and the other BEPS minimum standards, and the standards for exchange of information on request and for the automatic exchange of financial account information (the “Common Reporting Standard”).
The Minister of Finance reported that the Ministry of Finance of Ukraine has developed the detailed Roadmap for the implementation of BEPS minimum standards and is planning to join the Multilateral Instrument (MLI) before the end of 2017. MLI shall contribute to the implementation of steps 6 and 14 which are part of the BEPS minimum standards. It will help to improve the mechanisms available to tackle the abuse of tax benefits arising from international agreements and avoidance of taxation on corporate profits. The relevant changes will be added simultaneously in more than 60 international agreements on the avoidance of double taxation.
Also, starting from 2020, automatic exchange of information on financial accounts of non-residents under the CRS will be launched. The CRS was developed by the OECD and endorsed by the G20. The first exchanges of information will take place in relation to the information collected in 2019. “This timetable is fairly realistic. We are well aware that prior to that we have to amend the legislation accordingly and ensure high standards of confidentiality and protection of the received data”, Mr. Danyliuk said. Thus, Ukraine will join more than 100 countries which are introducing this new standard for information exchange which helps to combat tax evasion.
The OECD representatives welcomed the will of Ukraine to join the automatic exchange of information starting from 2020, and expressed their readiness to cooperate with Ukraine to achieve these goals. Ukraine joined OECD’s Global Forum for Transparency and Exchange of Information in 2013 and made a commitment to meet the international transparency standards.
The parties agreed to continue the fruitful cooperation between Ukraine and the OECD. The OECD representatives emphasized that the successful implementation of the above objectives depends on the effective performance of all relevant stakeholders and offered their expert support in this area.