UK and International Tax news
Automatic Exchange Of CbC Reports Update
Wednesday 26th October 2016
The OECD has confirmed that Brazil, Guernsey, Jersey, the Isle of Man and Latvia have recently signed the Multilateral Competent Authority Agreement for the automatic exchange of Country by Country reports, bringing the total number of signatories to 49.
The OECD expects the MCAA will enable consistent and swift implementation of new transfer pricing reporting standards developed under Action 13 of the BEPS Action Plan. It will assist tax administrations in obtaining a complete understanding of the way multinational enterprises structure their operations through the annual automatic exchange of CbC reports, whilst ensuring that the confidentiality of such information is safeguarded.
CbC reporting requires MNEs to provide aggregate information annually, in each jurisdiction where they do business, relating to the global allocation of income and taxes paid, together with other indicators of the location of economic activity within the MNE group. It will also cover information about which entities do business in a particular jurisdiction and the business activities each entity engages in.
If you would like further information on the above, please contact Keith Rushen on 0207 486 2378.
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