Corporate tax departments must consider data analytics to combat the reputational threat of BEPS, particularly moves to introduce county by country reporting (CBCR) from 1 January 2017. Jan van Trigt and Albert Fleming, tax experts at Delitte consider potential tips and pitfalls of CBCR
The G20 and OECD’s Base Erosion and Profit Shifting (BEPS) action plan has been described as ‘the first substantial renovation of the international tax rules in almost a century’.
The project aims to create a degree of transparency to tax authorities combined with changes to domestic law and double tax treaties that will change the global tax landscape, while presenting large companies with a significant data gathering and data management headache. Data analytics can help.
One of the key BEPS changes is the introduction of country-by-country reporting (CBCR) for multinational corporations (MNCs) with turnover in excess of e750m (£600m).
MNCs will be required to report confidentially to tax authorities on revenues, pre-tax profits, corporate income taxes paid and accrued, headcount, assets, a business activity code for each operating entity and several other items of information.
