The OECD established an international reporting framework called country-by-country reporting to increase the transparency of tax paid by large multinational groups. As a result, many jurisdictions have incorporated these rules into their domestic legislation.
An adviser with an international network of firms can help reduce the time burden on your business and provide tailored advice in respect of each jurisdiction in which your group operates. The volume of information to be analysed and disclosed in relation to these rules is vast and we can provide clear guidance to enable you to continue to concentrate on your business.
How we can help
Notify: We can assist the group with the UK notification requirement. This can be either advising on how to complete the notification requirement or by preparing the notification and submitting it to HMRC on behalf of the group.
Prepare: We can obtain from the group all of the relevant information to be included in the report for submission to HMRC or the tax authorities of another jurisdiction.
Review: If the group has prepared a full report, we can review it and provide comments on whether or not any further information needs to be added to comply with the rules.
Conversion: Once the accounting information has been analysed and collated, we can assist with the conversion to xml format, which is the format required by HMRC.
Submission: We can submit the country-by-country report on behalf of the group to HMRC.
Frequently asked questions about country-by-country reporting
Who is subject to country-by-country reporting?
Country-by-country reporting only applies to groups with consolidated turnover in excess of €750 million. This applies whether or not formal consolidated figures are required to be calculated in the parent entity’s jurisdiction.
What is country-by-country reporting?
Country-by-country reporting aims to increase tax transparency and allow tax authorities to identify risks related to profit shifting.
It aims to increase cooperation between tax authorities. Country-by-country reporting requires groups to report global figures on an aggregated jurisdictional basis, so that tax authorities can identify areas where the profits recorded and taxes paid are not aligned with the economic presence of a group.
These reports are then shared between tax authorities as part of an automatic exchange of information agreement to allow authorities to better identify and tackle profit shifting issues.
The information must be reported in a specific format and tagged accordingly.