Commenting on the EU proposals for public Country by Country Reporting announced yesterday, Julie Hughff, Tax Partner at KPMG in the UK said:
“The proposals go further than originally planned, with a requirement that the largest multinational groups disclose detailed information about their activities in certain jurisdictions outside of the EU. Those jurisdictions have yet to be decided so the question now is whether Member States can reach agreement on which countries should be included on that list.
“In order to decide which non-EU tax territories to include the Commission has set criteria around transparency and exchange of information, fair tax competition and other standards set by the G20, OECD and Financial Action Tax Force, with an aim to present the first scoreboard results of these additional jurisdictions in the autumn of 2016. Given the ongoing tax transparency debate, the process of assembling this list will no doubt be highly scrutinised.
“This level of public reporting goes beyond the OECD’s recommendation that country by country reports be provided to tax authorities, and businesses operating in the EU may be concerned about the impact on competitiveness if the data is commercially sensitive. The EU has scaled back the data requirements for the public report to address some of these concerns, but we can expect the debate on the level of disclosure and transparency to continue for some time."
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KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a revenue of £1.96 billion in the year ended September 2015. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 174,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.