Benin

136. Benin can legally issue the following type of rulings within the scope of the transparency framework: permanent establishment rulings.

137. 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 they were still in effect as at 1 January 2015.

138. In the prior year’s peer review report, it was determined that Benin reviewed its files on rulings and confirmed that no past rulings have been issued. As such, Benin indicated no past rulings within the scope of the transparency framework have been issued and there was no need to identify potential exchange jurisdictions.

139. For Benin, future rulings are any tax rulings within scope that are issued on or after 1 April 2017.

140. In the prior years’ peer review reports, Benin indicated that there was no process in place to keep records of rulings for the purposes of the transparency framework. It was also noted that Benin intended to implement guidelines to ensure the necessary information to meet the requirements of the transparency framework is required in all cases, but there have been no developments during the year in review. Benin is therefore recommended to finalise its information gathering process as soon as possible.

141. In the prior years’ peer review reports, it was determined that Benin did not yet have a review and supervision mechanism under the transparency framework and was still in the process of considering the implementation of such a mechanism. As there have been no developments on this issue, the recommendation remains in place.

142. Benin is recommended to finalise its information gathering process, with a review and supervision mechanism as soon as possible (ToR I.A).

143. Benin is still in the process of putting in place the necessary domestic legal basis to exchange information spontaneously.

144. Benin does not have currently in effect an agreement that would allow for spontaneous exchange of information under the transparency framework. Benin signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters: Amended by the 2010 Protocol (OECD/Council of Europe, 2011[4]) (“the Convention”) in November 2019, but Benin has not yet ratified the Convention. Benin is therefore encouraged to continue its efforts to ratify the Convention and expand its international exchange of information instruments to be able to exchange information on rulings. It is noted, however, 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.

145. 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.

146. As no exchanges were required to take place no data on the timeliness of exchanges can be reported.

147. 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.B).

148. As no rulings were issued, no statistics can be reported.

149. Benin does not offer an intellectual property regime for which transparency requirements under the Action 5 Report (OECD, 2015[1]) were imposed.

References

[3] OECD (2021), BEPS Action 5 on Harmful Tax Practices - Terms of Reference and Methodology for the Conduct of the Peer Reviews of the Action 5 Transparency Framework, OECD Publishing, Paris, http://www.oecd.org/tax/beps/beps-action-5-harmful-tax-practices-peer-review-transparency-framework.pdf.

[1] OECD (2015), Countering Harmful Tax Practices More Effectively, Taking into Account Transparency and Substance, Action 5 - 2015 Final Report, OECD/G20 Base Erosion and Profit Shifting Project, OECD Publishing, Paris, https://dx.doi.org/10.1787/9789264241190-en.

[2] OECD (ed.) (2017b), Harmful Tax Practices - 2017 Progress Report on Preferential Regimes, OECD Publishing, Paris, http://dx.doi.org/10.1787/9789264283954-en.

[4] OECD/Council of Europe (2011), The Multilateral Convention on Mutual Administrative Assistance in Tax Matters: Amended by the 2010 Protocol, OECD Publishing, Paris, https://dx.doi.org/10.1787/9789264115606-en.

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