Timeline 2017

2017 is the year in which international tax transparency becomes reality:

• First CRS exchanges (September 2017): 49 early-adopter jurisdictions exchange financial account data automatically for the first time
• MLI signing (June 2017): 67 countries sign the BEPS Multilateral Instrument for simultaneous amendment of thousands of double tax treaties
• Paradise Papers (November 2017): 13.4 million documents from Appleby and Asiaciti Trust are published, intensifying pressure on offshore centers
• ATAD II (May 2017): The Council adopts the extension of the Anti-Tax Avoidance Directive to hybrid mismatches with third countries (Directive 2017/952/EU)
• US Tax Cuts and Jobs Act (December 2017): Comprehensive US tax reform introducing GILTI, BEAT, and FDII

On June 7, 2017, 67 jurisdictions signed in Paris the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). This international law instrument enabled thousands of bilateral double tax treaties to be amended without individual negotiations – a milestone in international tax law harmonization. The MLI only entered into force on July 1, 2018, after five states had deposited their instruments of ratification.

In September 2017, the first automatic CRS data exchange took place: 49 jurisdictions transmitted account data to partner countries (deadline: September 30, 2017). By end of 2018, over 100 countries had completed first exchanges.

On May 29, 2017, the EU Council adopted ATAD II (Directive 2017/952/EU), which extended the hybrid mismatch rules of ATAD I (Directive 2016/1164/EU, adopted July 12, 2016) to arrangements with third countries. The transposition deadline for most ATAD I provisions was January 1, 2019; the extended hybrid rules under ATAD II had a deadline of January 1, 2020.

Also in 2017, preparations were underway for transposition of DAC5 (Directive 2016/2258/EU), which gave tax authorities access to anti-money laundering information (AML data) and entered into force on January 1, 2018.

On November 5, 2017, the International Consortium of Investigative Journalists (ICIJ) published the Paradise Papers – 13.4 million documents from the offshore firms Appleby and Asiaciti Trust. The revelations intensified political pressure for further transparency measures.

On December 22, 2017, President Trump signed the Tax Cuts and Jobs Act (TCJA), the most comprehensive US tax reform since 1986. The law introduced, among other provisions, GILTI (Global Intangible Low-Taxed Income), BEAT (Base Erosion and Anti-Abuse Tax), and FDII (Foreign-Derived Intangible Income).

Affected actors and areas:

• MLI: All signatory states and their existing tax treaty networks
• CRS: Financial institutions in early-adopter states; account holders with foreign tax residency
• ATAD I: All companies in EU member states with cross-border structures

• MLI Article 7 (PPT): Principal Purpose Test as GAAR in treaty networks of signatory states
• CRS reports: First reporting and exchange for early adopters; account holders must provide tax residency self-certification
• ATAD I interest limitation: Net interest expense capped at 30% of EBITDA (transposition deadline: 1 Jan 2019)
• ATAD I CFC rules: Controlled foreign company income inclusion for passive income of controlled foreign entities
• ATAD II hybrid mismatches: Extension of hybrid mismatch rules to third-country arrangements (transposition deadline: 1 Jan 2020)

3 corrections:
- Inconsistency: meta_desc says 'over 50 countries', history says '49 jurisdictions'
- US Tax Cuts and Jobs Act: Wrong signing date (Dec 20 instead of Dec 22)
- ATAD I was adopted in 2016, not finalized in 2017
3 updates:
- Missing mention of ATAD II (Directive 2017/952/EU)
- Missing mention of EU DAC5 (Directive 2016/2258/EU, effective from 2017)
- Missing mention of Paradise Papers (November 2017)
3 clarifications.
2 notes.