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

716. Liberia can legally issue the following type of ruling within the scope of the transparency framework: 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.

717. For Liberia, 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.

718. In the prior years’ peer review reports, it was determined that Liberia issued no past rulings in scope of the transparency framework. As such, there was no need to identify potential exchange jurisdictions.

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

720. In the prior year’s peer review report, Liberia indicated that there were not yet processes in place to ensure the implementation of the obligations relating to the transparency framework. Liberia was recommended to finalise its information gathering process as soon as possible. During the year in review, as it is not known whether Liberia has finalised its information gathering process, the recommendation remains in place.

721. In the prior year’s peer review report, it was determined that Liberia did not yet have a review and supervision mechanism under the transparency framework. As it is not known whether Liberia has put in place a review and supervision mechanism under the transparency framework for the year in review, the recommendation remains in place.

722. Liberia is recommended to ensure that it has put in place an information gathering process to identify all relevant future rulings and all potential exchange jurisdictions and to implement a review and supervision mechanism, as soon as possible (ToR I.A).

723. Liberia has the necessary domestic legal basis to exchange information spontaneously. The prior year report noted 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.

724. Liberia has international agreements permitting spontaneous exchange of information, including being a party to (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 two jurisdictions.1

725. The prior year report noted that Liberia did not yet have a process to complete the templates on all relevant rulings, to make them available to the Competent Authority for exchange of information, and to exchange them with relevant jurisdictions. It is not known whether Liberia has already put in place a process to exchange information on rulings in accordance with the form and timelines required by the transparency framework. Liberia is recommended to ensure the timely exchange of information on rulings in the form required by the transparency framework.

726. As it is not known whether exchanges took place in the year of review, no data on the timeliness of exchanges can be reported.

727. Liberia is recommended to develop a process to complete the templates for all relevant rulings and to ensure that the exchanges of information on rulings occur in accordance with the form and timelines under the transparency framework going forward (ToR II.B).

728. As the Secretariat is not aware whether information on rulings was exchanged by Liberia for the year in review, no statistics can be reported.

729. Liberia 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.