25th April 2016 – Deloitte Global Transfer Pricing Alert 2016-016
A recent European Commission proposal calls for the imposition of a public country-by-country (CbC) reporting requirement on multinational enterprises (MNEs) operating in the European Union.
The April 12 proposal, which calls for amendments to the EU’s Accounting Directive, would require some MNEs to disclose financial information.
The proposal is separate from the EU’s proposed harmonized implementation of a CbC reporting requirement as part of the Anti-Tax Avoidance Package, which is based on the final recommendations of the base erosion and profit shifting (BEPS) project released by the OECD in October 2015.
This proposal would give tax authorities automatic access to selected tax and financial information of MNEs related to their operations in the EU.
Under these two initiatives, some MNEs would be subject to the obligation to submit two CbC reports: a full CbC report to be filed with the tax authorities in the MNE’s headquarters country, and a limited CbC report that would be available to the public.