Tax, BEPS and your business: Public profile

Tax, BEPS and your business: Public profile

The implications of the BEPS recommendations' focus on reporting and transparency.

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The aspect of the BEPS project which has arguably been the highest profile to date has been the continued march towards increased transparency and disclosure relating to a group’s tax affairs.  Historically, the tax affairs of a company (and indeed of an individual) have been a private matter between the taxpayer and the relevant tax authority.  This however is changing, and the BEPS recommendations acknowledge this through their focus on reporting and transparency.

The implications of this for the business may be obvious but they are nonetheless alarming for many groups:  

  • Information about a group’s tax affairs will be shared more widely and freely between tax authorities;
  • Previously private information about a group’s tax matters will become much more easily accessible by the public, especially with the drive towards public country-by-country reporting;
  • There will be increased scrutiny of a corporate’s tax profile;
  • It will be increasingly easy for a person outside of the group (whether a tax authority or the public) to assess whether a group’s tax profits align with its geographic operating footprint – and to draw conclusions on the perceived corporate responsibility of the group.

In light of this increasingly transparent environment, groups (especially those operating multinationally) will need to ensure they allow sufficient time and resource to collating and reviewing the reports and documentation required by BEPS.  Data will need to be cross-checked for completeness and consistency.  

For those groups which recognise that the move towards greater transparency is a one way street, there will be opportunities to proactively manage the flow of information and the accompanying messages, promoting the group as a responsible contributor to society.  All of this requires a change in mind set across the business and cannot be the sole responsibility of tax.

Checklist

  • Are you ready for the increased scrutiny over your tax affairs?
  • Are you confident that the increasingly publically available data will present your group in a consistent and appropriate light?
  • Do you have the necessary systems and processes in place to meet the reporting and documentation requirements introduced by BEPS?
  • Are you ready to optimise the increase in available data about your competitors?

Our offering

We can work with you to prepare and sense-check the reporting and documentation requirements introduced by the BEPS project (the country by country report, and the masterfile and local file transfer pricing reports).  However, in addition, we also have extensive experience of working with groups to manage their tax profile both with tax authorities, with the public and with other stakeholders.  

Who to speak to?

Julie Hughff, Komal Dhall

Tax, BEPS and your business

Tax, BEPS and your business

BEPS represents a fundamental change to the corporate tax landscape and it's effect will be felt across your whole business.

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Base Erosion and Profit Shifting

The global tax landscape is fundamentally changing and BEPS is putting tax firmly on the strategic business agenda.

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