The Chief Minister’s Department issued a public consultation on the Introduction of Country-by-Country Reporting (“CbCR”) in January 2016.
Following response to the consultation in April 2016, the Government of
Jersey has now published draft regulations for purposes of implementing the
CbCR for the accounting periods beginning on or after 1 January 2016.
Draft Taxation (Implementation) (International Tax Compliance) (Country-by Country Reporting: BEPS) (Jersey) Regulations 201-, is evidence of Jersey’s commitment to implementing one of the four minimum standards (country-by-country reporting) required of a BEPS Associate such as Jersey.
Jersey is expected to sign a Multilateral Competent Authority Agreement on the Exchange of Country-by-Country Reports later this month. The agreement will set out requirements for filing and exchange of information for tax purposes to enable implementation of the “Transfer Pricing Documentation and Country-by-Country Reporting – Action 13: 2015 Final Report”.
We highlight below, the salient features of the draft regulations:
Broadly, a CbCR is required to be filed with the Comptroller of Taxes by the ultimate parent entity of an MNE Group that has total consolidated group revenues of EUR 750M if the entity is resident in Jersey.
Furthermore, a Jersey entity which is not itself an ultimate parent entity of an MNE Group that has local consolidated group revenues of EUR 750M or more may be required to file a Jersey CbCR by the filing deadline if:
The Jersey entity is required to notify the Comptroller on or before the last day of its accounting period of its intention to file any CbCR in respect of its accounting period.
Offences and penalities
The regulations propose a penalty regime in line with those in operation relating to the regulations which give effect to the Common Reporting Standard (“CRS”) and FATCA.
The Comptroller is empowered to enter business premises and examine and take copies of business documents for purposes of enforcing compliance with the country-by-country regulations.
In addition to this, the regulations also pre-empt the use of anti-avoidance schemes in order to avoid taxation thus any arrangements entered into by a person for purposes of avoiding any requirement of the regulations will be deemed null and void.
View a copy of the draft regulations
© 2018 KPMG Channel Islands Limited, a Jersey company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.