The Organisation for Economic Cooperation and Development (OECD) today announced that Brazil, Guernsey, Jersey, the Isle of Man, and Latvia signed the Multilateral Competent Authority Agreement (MCAA) for the automatic exchange of country-by-country (CbC) reports.
The OECD's release notes that today's action brings the total number of signatories to the MCAA to 49, and that this represents a further milestone towards the implementation of the OECD/G20 base erosion and profit sharing (BEPS) project and cross-border cooperation on tax matters.
According to the OECD, the MCAA will enable implementation of new transfer pricing reporting standards developed under Action 13 of the BEPS action plan. With this, tax administrations will be able to obtain a complete understanding of the way multinational entities structure their operations, through the annual automatic exchange of CbC reports. It also will help to safeguard the confidentiality of taxpayer information. With CbC reporting, multinational entities will be required to provide aggregate information annually, in each jurisdiction where they do business, relating to the global allocation of income and taxes paid, together with other indicators of the location of economic activity within the taxpayer group. It will also cover information about which entities do business in a particular jurisdiction and the business activities of each entity.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.