Group Says OECD Risk Program Helpful, but Barriers Remain

A tax risk assessment program piloted by the OECD was a positive experience for companies overall, but barriers to entry remain to participate.

A January report by Business at the OECD, published Monday, described companies’ experiences participating in two pilots for the International Compliance Assurance Program, or ICAP.

First piloted in 2018, the program allows multinational companies to discuss their tax positions with government tax administrations and get more certainty about the treatment of their positions. Any resulting agreements are nonbinding.

ICAP reviews can cover transfer pricing and permanent establishment-related issues, although other risks can be covered, too.