A new guide by KPMG covering the EU’s views on country-by-country reporting.
KPMG's EU Tax Centre has released a new publication, Country-by-country reporting: an EU perspective, which lays out the requirements of country-by-country reporting from an EU point of view. It also discusses how the draft proposal for the EU's public country-by-country reporting differs from its non-public country-by-country reporting (i.e. reporting to tax authorities). As a result of increased tax transparency initiatives at the OECD and EU levels, businesses need to clearly understand the different reporting requirements in each jurisdiction they operate in.
The KPMG EU Tax Centre has developed an abbreviated [PDF 804 KB] and a full version [PDF 1.53 MB] of the guide. Both draw insights and comparisons between non-public country-by-country reporting under both the EU and OECD initiatives and the current draft of the EU proposal on country-by-country reporting to the public.
The full version of the guide includes discussion surrounding:
The European Commission issued a draft directive on public country-by-country reporting on April 12, 2016. Generally, under the proposal, the public country-by-country rules only apply where a multinational company has an ultimate parent or a group subsidiary in the EU or a branch in the EU and has consolidated net turnover (i.e., consolidated revenue) of at least €750 million.
The proposal must still be approved by the EU member states and the European Parliament before it is adopted; however, it seems clear that the European Parliament supports this initiative, since it made proposals earlier in 2015 to introduce similar rules. While tax related legislation normally requires unanimous approval by all EU member states, in the case of the current proposed directive it will only require a qualified majority (i.e., broadly, 16 member states representing at least 65% of the EU population.)
For more information, contact your KPMG adviser.
Information is current to August 23, 2016. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500