OECD Consultation on Tax Certainty for the GloBE Rules

On December 20, 2022, the OECD published a consultation document on Tax Certainty for the GloBE Rules. The consultation runs until February 3, 2023.
Jurisdictions that choose to implement the Pillar Two GloBE Rules will need to enact domestic legislation to give effect to the rules. This raises the possibility that there could be differences in the interpretation or application of the rules between different jurisdictions. 
This would create uncertainty for MNE Groups and could potentially result in double taxation from the application of the GloBE rules in different jurisdictions.
The OECD is therefore seeking feedback on proposed measures to provide tax certainty for MNEs.  The proposals are broadly split between dispute prevention measures and dispute resolution measures. 
Dispute Prevention Mechanisms
Qualified Rule Status 
The OECD Model GloBE Rules already provide that a jurisdictions Income Inclusion Rule, Under-Taxed Payments Rule and Domestic Minimum Tax would need to be ‘qualified’ in order for it to be recognised in other jurisdictions and apply in the imposition of any top-up tax. 
This is to be achieved through a multilateral review process.
Referral to the Inclusive Framework on BEPS
Where there is uncertainty in the interpretation or application of the GloBE Rules between jurisdictions, relevant jurisdictions can refer an issue to the Inclusive Framework on BEPS for clarification. 
Note that this does not apply to an issue concerning taxation in a specific case and taxpayer information could not be shared.
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