The OECD Forum on Harmful Tax Practices (FHTP) will begin to move towards the “effective implementation” of its economic substance rules in January 2021.
The 12 jurisdictions affected – known as no or only nominal tax jurisdictions - will face spontaneous exchanges of information on the activities and income of entities with the jurisdictions of the immediate parent, ultimate parent and beneficial owners of such entities.
At the same time, the FHTP will launch an annual monitoring process to ensure that the 12 jurisdictions have appropriate mechanisms in place to ensure ongoing compliance with the standard.
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