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OECD: “Stage 2” peer review of tax dispute resolution (MAP) (BEPS Action 14)

OECD: “Stage 2” peer review of tax dispute resolution

The Organisation for Economic Cooperation and Development (OECD) today announced the first round of “stage 2” peer-review monitoring reports concerning the follow-up of recommendations resulting from the “stage 1” peer-review reports.

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The mutual agreement procedure (MAP) peer review and monitoring process of the tax dispute resolution mechanisms under Action 14 of the base erosion and profit shifting (BEPS) project was launched in December 2016, with the peer-review process to be conducted in two stages. 

  • Under stage 1, implementation of the Action 14 minimum standard is evaluated for Inclusive Framework members.
  • Stage 2 focuses on monitoring the follow-up of the recommendations resulting from jurisdictions' stage 1 report. 


As noted in today’s OECD release, stage 2 monitoring reports are available for:

  • Belgium
  • Canada
  • Netherlands
  • Switzerland
  • United Kingdom
  • United States


The reports evaluate the progress made by these six jurisdictions, demonstrating “positive change across all six jurisdictions.”  In support, the OECD provided the following examples:

  • Some jurisdictions have updated or clarified issues in their mutual agreement procedure (MAP) guidance.
  • All jurisdictions that had not already done so have introduced documented internal guidance to provide for a notification or bilateral consultation process with the other competent authority concerned in cases when an objection is considered as being not justified.
  • In some jurisdictions, more personnel was provided to the competent authority function and organisational changes were implemented or have been initiated with a view to handle MAP cases in a more timely, effective and efficient manner.
  • Each of the six jurisdictions decreased (or maintained) the amount of time needed to close MAP cases, and five of the six jurisdictions met the targeted 24-month average timeframe to close MAP cases.
  • The multilateral instrument (MLI) was used by almost all jurisdictions to bring some of these treaties in line with the standard and bilateral negotiations were concluded (or are ongoing) for most jurisdictions.

What's next?

The OECD release states that further progress on making dispute resolutions more timely, effective, and efficient will become known as other stage 2 monitoring reports are published.

In the meantime, the OECD will continue to publish stage 1 peer-review reports in accordance with the Action 14 peer-review assessment schedule. 

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