As part of their commitment to supporting the OECD’s base erosion and profit shifting (BEPS) project, Jersey has opened a consultation on the introduction of Country by Country (CbC) reporting to improve tax transparency between multinational entities and tax authorities, and to identify “aggressive tax avoidance”. The consultation has asked for opinions on the UK’s draft CbC regulations, as the intention is that Jersey’s own regulations will be closely based on these and on OECD model legislation. The consultation also seeks views on the introduction of CbC for accounting periods beginning on or after 1 January 2017.
The proposed regulations would require multinational enterprises with parent entities resident in Jersey and with consolidated group revenue of £586 million or more in a 12-month accounting period (reduced proportionately for shorter periods) to file a CbC return annually with the Jersey tax authorities.
If no major issues are identified as part of the consultation process, then draft regulations will be presented to Ministers for consideration before being presented to the States of Jersey for approval.
The consultation can be found here, and comments are requested by 22 April 2016.