An opportunity to introduce improved methods for group reporting

In 2013 OECD and G20 countries adopted a common action plan on Base Erosion and Profit Shifting (BEPS) that identified 15 actions to combat profit shifting.

Country-by-Country Reporting (CbCR) is part of the OECD's Action Item 13. In short, large multinationals must provide an annual report that breaks down key elements of the financial statements by jurisdiction.

While the CbCR is ultimately intended to boost transparency and accuracy in reporting, it is also intended to ensure that adequate taxes are paid in the jurisdiction where profits are generated, where value is added and where risk is taken.

What is driving the initiative?

The OECD’s Base Erosion and Profit Shifting initiative seeks to close gaps in international taxation for companies that allegedly avoid taxation or reduce tax burden in their home country by engaging in tax inversions (moving operations) or by migrating intangibles to lower tax jurisdictions.

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• Who is affected and who is not?
• How does CbCR affect my business?
• Examples of CbCR in the Netherlands and Norway
• How to approach CbCR