Harmful Tax Practices – 2023 Peer Review Reports on the Exchange of Information on Tax Rulings

491. Grenada can legally issue the following five types of rulings within the scope of the transparency framework: (i) preferential regimes; (ii) cross-border unilateral APAs and any other cross-border unilateral tax rulings (such as an advance tax ruling) covering transfer pricing or the application of transfer pricing principles; (iii) rulings providing for unilateral downward adjustments; (iv) permanent establishment rulings; and (v) related party conduit rulings.

492. For Grenada, past rulings are any tax rulings issued prior to 1 March 2019. However, there is no obligation for Grenada to conduct spontaneous exchange information on past rulings.

493. For Grenada, future rulings are any tax rulings within scope that are issued on or after 1 March 2019.

494. In prior years’ peer review report, Grenada indicated that processes are not yet in place to ensure the implementation of the obligations relating to the transparency framework such as the record keeping of rulings. It was noted that Grenada intends to implement appropriate processes to ensure that the necessary information to meet the requirements of the transparency framework is required in all cases. Therefore, Grenada was recommended to finalise its information gathering process for identifying all future rulings and all potential exchange jurisdictions.

495.  During the year in review, it is not known whether Grenada has put in place this process to identify all future rulings and potential exchange jurisdictions, and therefore the recommendation remains in place.

496. In the prior years’ peer review reports, it was determined that Grenada did not yet have a review and supervision mechanism for past rulings under the transparency framework. Therefore, Grenada was recommended to put in place a review and supervision mechanism as soon as possible. Grenada was discussing the implementation of a revision and supervision mechanism for ensuring implementation of the transparency framework.

497. During the year in review, it is not known whether action has been undertaken on this aspect during the year in review and therefore, the recommendation remains in place.

498. Grenada is recommended to finalise its information gathering process for identifying all past and future rulings and all potential exchange jurisdictions, with a review and supervision mechanism, as soon as possible (ToR I.A).

499. Grenada has the necessary domestic legal basis to exchange information spontaneously. Grenada notes that there are no legal or practical impediments that prevent the spontaneous exchange of information on rulings as contemplated in the Action 5 minimum standard.

500. Grenada has international agreements permitting spontaneous exchange of information, including (i) the Multilateral Convention on Mutual Administrative Assistance in Tax Matters: Amended by the 2010 Protocol (OECD/Council of Europe, 2011[2]) (“the Convention”) and (ii) bilateral agreements in force with 12 jurisdictions.1

501. In the prior years’ peer review report, it was noted that Grenada was 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. Therefore, Grenada was recommended to finalise its process to complete the templates on relevant rulings and to ensure that the exchanges of information on rulings occur in accordance with the form and timelines under the transparency framework (ToR II.B). As it is not known whether action has been undertaken on this aspect during the year in review, the recommendation remains in place.

502. It is not known whether Grenada issued rulings during the year in review. Therefore, no data can be reported on the timeliness of exchanges of information.

503. Grenada is recommended to continue its efforts to put in place a process 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).

504. As there was no information on rulings exchanged by Grenada for the year in review, no statistics can be reported.

505. Grenada does not offer an intellectual property regime for which transparency requirements under the Action 5 Report (OECD, 2015[3]) were imposed.

[1] 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.

[3] 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://doi.org/10.1787/9789264241190-en.

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