CRA confirms that it will be exchanging rulings under BEPS

Yesterday’s budget (after noting that Canada's information exchange agreements "restrict the use of the exchanged information...typically...to the enforcement of tax laws...and...ensure the confidentiality of the information") confirmed “the Government’s intention to implement the BEPS minimum standard for the spontaneous exchange of certain tax rulings” so that CRA “will commence exchanging tax rulings in 2016 with other jurisdictions that have committed to the minimum standard.” CRA indicated today that effective April 1, 2016, it will be providing summaries (and, if so requested, further details) of the contents of the following categories of rulings with the countries of residence of the immediate and ultimate parent and certain other parties (which countries may then ask to receive relevant portions in more detail) - re:

a) preferential regimes (for Canada, including international shipping and certain foreign life insurance operations of a Canadian company);

b) cross-border transfer pricing;

c) downward adjustment not directly reflected in the taxpayers’ accounts;

d) permanent establishments; and

e) related party conduits.

Neal Armstrong. Summary of 22 March 2016 Memo 2016-0632941I7 under Article 27.