Country-by-country reporting is here to stay
The State of Country-by-Country Reporting
In the article The State of Country-by-Country Reporting, issued by Tax Notes International, Henrik Lund, Partner at KPMG Acor Tax, together with his international co-authors, highlight the movement toward increased transparency and how that translates into additional compliance burdens, concluding that country-by-country reporting is here to stay.
The State of Country-by-Country Reporting
Over the last decade, an unprecedented number of tax transparency measures has been introduced in the global business community. Those measures, many adopted as part of the OECD base erosion and profit-shifting project, reflect the collective response from G-20 members and the OECD following the 2008 global financial crisis. Specifically, the BEPS project culminated in a series of 15 actions to curb tax avoidance by multinational enterprises.
While the jury is still out on whether those actions are fulfilling their goals, there has been one very tangible effect on MNEs — reporting. And lots of it. There is no better example of that than country-by-country reporting under BEPS action 13.1 Since 2016 MNEs worldwide have struggled to comply with the CbC reporting requirements.
The article The State of Country-by-Country Reporting, issued by Tax Notes International, August 31, 2020 explores the topic of Country-by Country reporting. The authors are Sean Foley, Mark R. Martin, Michael H. Plowgian, John DerOhanesian, Henrik Lund, Raj Bodapati, and Josh McConkey.
The article is meant to provide you with an update on the status of the CbC reporting process and an overview of the regulatory landscape.