copy the linklink copied!Benin
Benin is taking steps to implement the legal basis for the transparency framework and to commence administrative preparations to ensure that information on rulings will be exchanged in a timely manner, in line with the terms of reference (OECD, 2017[3]) (ToR). Benin is recommended to ensure that it has put in place an effective information gathering process and to implement a review and supervision mechanism, as soon as possible (ToR I.4). In addition, Benin is recommended to develop a process to complete the templates on relevant rulings, to ensure that the exchanges of information on rulings occur in accordance with the form and timelines under the transparency framework going forward (ToR II.5).
Benin can legally issue one type of rulings within the scope of the transparency framework. In the prior year peer review report, it was noted that Benin did not issue rulings within the scope the transparency framework. However, it has since been confirmed that Benin can issue rulings to which the transparency framework applies.
In practice, Benin has issued no rulings in the year in review. As no exchanges were required to take place, no peer input was received in respect of the exchanges of information on rulings received from Benin.
copy the linklink copied!Introduction
This peer review covers Benin’s implementation of the BEPS Action 5 transparency framework for the year 2018. The report has four parts, each relating to a key part of the ToR. Each part is discussed in turn. A summary of recommendations is included at the end of this report.
copy the linklink copied!A. The information gathering process
Benin can legally issue one type of rulings within the scope of the transparency framework: permanent establishment rulings.
Past rulings (ToR I.4.1.1, I.4.1.2, I.4.2.1, I.4.2.2)
For Benin, past rulings are any tax rulings within scope that are issued either: (i) on or after 1 January 2015 but before 1 April 2017; and (ii) on or after 1 January 2012 but before 1 January 2015, provided still in effect as at 1 January 2015.
In Benin, rulings are issued by the directorate of Legislation and Litigation, within the Tax Administration. This unit is responsible for storing and reviewing such rulings and has reviewed its files, being able to confirm that no past rulings have been issued. To date, no rulings in scope of the transparency framework have been issued. As such there was no need to identify potential exchange jurisdictions.
Future rulings (ToR I.4.1.1, I.4.1.2, I.4.2.1)
For Benin, future rulings are any tax rulings within scope that are issued on or after 1 April 2017.
No rulings were issued by Benin during the future rulings period in the year of review. However, Benin indicates that there are no processes in place for the record keeping of rulings for the purposes of the transparency framework. It is noted that Benin intends to implement guidelines and practices to make sure the necessary information to meet the requirements of the transparency framework is required in all cases.
copy the linklink copied!B. The exchange of information
Legal basis for spontaneous exchange of information (ToR II.5.1, II.5.2)
Benin is currently in the process of putting in place the necessary domestic legal basis to exchange information spontaneously.
Benin is not a Party to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters: Amended by the 2010 Protocol (OECD/Council of Europe, 2011) (“the Convention”). Benin is encouraged to continue its efforts to expand its international exchange of information instruments to be able to exchange rulings. It is however noted that jurisdictions are assessed on their compliance with the transparency framework in respect of the exchange of information network in effect for the year of the particular annual review.
Completion and exchange of templates (ToR II.5.3, II.5.4, II.5.5, II.5.6, II.5.7)
Benin is still developing a process to complete the templates on relevant rulings, to make them available to the Competent Authority for exchange of information, and to exchange them with relevant jurisdictions.
As no exchanges were required to take place in the year of review, no data on the timeliness of exchanges can be reported.
Conclusion on section B
Benin is recommended to put in place a domestic legal framework allowing spontaneous exchange of information on rulings and to continue its efforts to complete the templates for all relevant rulings and to ensure that the exchanges of information on rulings occur as soon as possible (ToR II.5).
copy the linklink copied!C. Statistics (ToR IV)
As no rulings are issued, no statistics can be reported.
copy the linklink copied!D. Matters related to intellectual property regimes (ToR I.4.1.3)
Benin does not offer an intellectual property regime for which transparency requirements under the Action 5 Report (OECD, 2015[5]) were imposed.
Metadata, Legal and Rights
https://doi.org/10.1787/7cc5b1a2-en
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