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What’s in there? On 10 September 2014 the ODRG issued a report that provides an update to the G20 regarding further progress made in resolving OTC deriv- atives cross-border implementation issues and identifies a cross-border issue that may call for legislative change. More specifically, the ODRG provides updates re- garding two areas in which it has been working to develop approaches to address cross-border issues: (1) potential gaps and duplications in the treatment of branches and affiliates; (2) the treatment of organized trading platforms and the implementation of the G20 trading commitment. Furthermore, the ODRG reports on four areas in which it has been working to implement under- standings reached previously: (1) equivalence and substituted compliance; (2) clearing de- terminations; (3) risk mitigation techniques for non-centrally cleared derivatives transactions (margin); (4) data in trade repositories and barri- ers to reporting to trade repositories, where the need for legislative change was identified. What’s next? The next ODRG report will be submitted to the G20 Leaders Summit in November 2014 and will report - inter alia- on how the ODRG has addressed or intends to address the treatment of branches and affiliates and any further un- derstandings on the implementation of the G20 trading commitment. A timetable for the imple- mentation of these approaches will also be pro- vided. Issuance of a first set of deliverables addressing Base Erosion and Profit Shifting (BEPS) by OECD Background In 2013, OECD and G20 countries adopted a com- mon Action Plan to fight BEPS. The key objective of the Action Plan was to ensure that profits are taxed in the country where the business activi- THE FULL ODRG REPORT IS AVAILABLE HERE.

« Reconciliation;

ties generating such profits are performed and where the value is created. Moreover, the plan proposed a country-by-country reporting tem- plate to provide governments with information on the global allocation of the profits, economic activities and taxes. What’s in there? On 16 September 2014, the OECD issued the 7 first deliverables of the 15-point Action Plan dealing with the following matters: « The tax challenge of the digital economy (Ac- tion 1); « Hybrid mismatch arrangements (Action 2); « ransfer pricing and intangibles (Action 8); « Transfer pricing documentation and coun- ty-by-country reporting (Action 13); « The feasibility of developing a multilateral in- strument on BEPS (Action 15). What’s next? These reports are scheduled for official approval by the Ministers of Finance of the G20 countries at their meeting in Cairns, Australia on 20 and 21 September. The remaining eight deliverables foreseen by the Action Plan are scheduled to be issued in 2015. « Harmful tax practices (Action 5); « Tax treaty abuse (Action 6);

« Portfolio Compression; « Dispute Resolution;

« Implementation;

« Cross-border Transactions.

Each standard is accompanied by key consid- erations on how the standards should be imple- mented and explanatory notes. What’s next? A request for comments on the proposed stand- ards has been made by the IOSCO Working Group. All comments have to be sent by e-mail/ facsimile transmission or paper version before Friday 17 October 2014.

THE CONSULTATION REPORT IS AVAILABLE HERE.

ODRG Report on progress in resolving OTC derivatives cross-border implementation issues Background

THE OECD DELIVERABLES ARE AVAILABLE HERE

The Over-the-Counter (OTC) Derivatives Regula- tors Group (ODRG) is composed of representa- tives of regulatory authorities with responsibility for the regulation of OTC derivatives markets in Australia, Brazil, the European Union (European Commission and ESMA), Hong Kong, Japan, On- tario, Québec, Singapore, Switzerland and the United States. Its work focuses on cross-border issues relating to OTC derivatives reforms. On 30 August 2013, the ODRG published a Re- port on Agreed Understandings to Resolving Cross-Border Conflicts, Inconsistencies, Gaps and Duplicative Requirements (available here), which was welcomed by the G20 summit of Sep- tember 2013 in St. Petersburg. In March 2014, the ODRG delivered a report to the G20, setting out a list of identified remaining cross-border implementation issues, a summa- ry of their status and a timetable for addressing them ( AVAILABLE HERE ).

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