OECD Clarifies Risk Assessment Program Eligibility in New FAQs

Multinational companies are eligible for the OECD’s International Compliance Assurance Program even if their parent corporation is located in a country that isn’t participating in ICAP, the organization said Tuesday.

In updated frequently asked questions, the Organization for Economic Cooperation and Development said a multinational corporation can request a “surrogate lead tax administration” that does participate in ICAP to carry out their risk assessment when their parent country does not.

The ICAP program allows companies to preemptively discuss their transfer pricing positions with tax administrations to obtain more certainty about their tax bills.

• In a typical ICAP process, ...