Canadian companies of qualifying multinational corporate groups now have definitive guidance for preparing country-by-country reports.
Specifically, the CRA’s release of Form RC4649, “Country-by-Country Report” now confirms the information that these entities need to report to comply with Canada’s new country-by-country reporting requirements. This new prescribed form is consistent with the Organisation for Economic Co-operation and Development’s (OECD) recommendations. The form clarifies what information companies must report to the CRA (including revenues, income taxes paid and the main activities of related entities) and how that information should be reported. The form is accompanied by five pages of instructions.
Canada’s country-by-country reporting rules, which were enacted in 2016, are intended to enhance tax transparency and to provide adequate information to conduct transfer pricing risk assessments. Country-by-country reporting is required for taxation years beginning after 2015, with the first automatic exchanges of information between governments slated to begin by June 2018.
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