Q & A on understanding new tax changes.
Vertex's Chief Tax Office provides insight regarding the impact of tax regulations, policy, enforcement and emerging technology trends on global tax department operations.
1) What information must be disclosed on the new CbC reporting template and what do CEOs need to know?
The Organisation for Economic Co-operation and Development (OECD) released the final version of its recommended Action 13 country-by-country (CbC) reporting template in September 2014 as part of its Action Plan on Base Erosion and Profit Shifting (BEPS).
Multinational entities (MNEs) will use this new CbC reporting template to report their income, taxes paid, and other indicators of economic activity. The intent is to improve the risk assessment capabilities of taxing authorities by providing them the country-by-country information of multinational companies at an early stage. According to the template, MNEs must report annually and for each tax jurisdiction in which they do business: