Canadian companies of qualifying multinational corporate groups now have a form and guidance with respect to preparing country-by-country (CbC) reports for filing in Canada.
The Canada Revenue Agency (CRA) released Form RC4649, Country-by-Country Report, that sets forth information that multinational corporations will need to report to comply with Canada’s new CbC reporting requirements. Form RC4649 is consistent with Organisation for Economic Co-operation and Development (OECD) recommendations, and clarifies what information companies must report to the CRA—including revenue, income taxes paid, and the main activities of related entities—and how that information is to be reported. The form is accompanied by five pages of instructions.
Canada’s CbC reporting rules (enacted in 2016) are intended to enhance tax transparency and to provide adequate information to conduct transfer pricing risk assessments. CbC reporting is required for tax years beginning after 2015, with the first automatic exchanges of information between governments slated to begin by June 2018.
Read a February 2017 report [PDF 78 KB] prepared by the KPMG member firm in Canada
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