How implementing the MDES AEOI Portal Helped Dominica Achieve Tax Transparency Compliance
In 2021, Dominica faced challenges as they were considered non-compliant with regards to the practical implementation of the standard, which led to the country’s placement on the EU list of non-cooperative jurisdictions for tax purposes. In response to this situation, BearingPoint was chosen to support the authorities of Dominica by implementing the Multi Data Exchange Solution (MDES) and providing support and consulting services throughout the data exchange process. This blog post will discuss the goals, objectives, and success metrics of the MDES AEOI portal implementation for Dominica and how it solved the problem of non-compliance with EU tax transparency criteria.
The main goal of the MDES AEOI portal implementation for Dominica was to have the system implemented and in use before the international deadline for data exchange, which is at the end of September each year. The project’s objectives included on-premises configuration and installation of the acceptance and production environments, enrollment to the Common Transmission System of the OECD, training of staff, training of financial institutions, reporting by financial institutions, and exchanging data with partner jurisdictions by the competent authority. The success of the project was measured by the removal of Dominica from the EU list of non-cooperative jurisdictions for tax purposes and the competent authority’s ability to exchange information before any deadlines.
The MDES AEOI portal implementation for Dominica faced challenges such as remote on-premises setup and installation, remote training sessions, and extra remote sessions with financial institutions that had complex technical questions related to reporting. The experienced project team overcame these challenges through careful planning and frequent and direct communication with end-users, using MS Teams or Zoom.
The project team used BeInformed, a software platform that empowers business users to manage and automate complex processes and cases, to address the challenges faced during the project. Innovative approaches and technologies were used to ensure the successful implementation and subsequent exchange of information through the MDES portal.
BearingPoint’s MDES AEOI portal implementation helped Dominica achieve tax transparency compliance and avoid being placed on the EU’s list of non-cooperative jurisdictions for tax purposes. The project’s success was measured by Dominica’s removal from the list and the competent authority’s ability to exchange information before the deadline. The implementation and exchange of information played a crucial role in Dominica’s recognition by the EU council for increased efforts in implementing tax good governance principles. The project had a significant impact, ensuring sustainable tax transparency and compliance in Dominica.