IOTA has just published on its website its latest report “Implementation of “Country-By-Country Reporting” Into Internal Rules and Procedures”. The report provides up-to-date information and effective solutions concerning the practical implementation of the minimum standard of BEPS Action 13 (“Country-by-Country Reporting”).
The report was prepared by Subgroup 3 of the IOTA Forum on Implementation of Measures to Counter Base Erosion and Profit Shifting (BEPS) and is based on data provided by 25 IOTA member tax administrations participating in a country survey. The survey was conducted in October 2018 aiming to understand how IOTA member tax administrations are implementing ‘Country-by-Country Reporting’ (CbCR) mechanisms.
The IOTA report provides examples of best practice and captures the experiences of member tax administrations in the following four key areas of ‘Country-by-Country Reporting’:
- Process for Filing and Exchange of CbC Reports
- Data Quality
- Ensuring Confidentiality and Appropriate and Effective Use
- CbC Risk Assessment
The report builds on the CbCR guidance developed by the OECD and contains a number of case studies and country examples which outline how IOTA members (Austria, Belgium, Italy, Norway and the United Kingdom) have approached the implementation of key CbCR processes. It focuses on some of the key challenges that members are facing, such as the quality of the data, and outlines practical steps that can be taken to overcome or minimise the effect of such problems. With regard to the quality of CbC data, the report considers both the quality of the XML schema and the quality of the taxpayer data.
The IOTA report also talks about approaches to risk assessment and outlines the advantages and disadvantages of both the manual risk assessment process and risk profiling. Case studies provide detail of how Italy and the UK have structured and resourced their work on CbC risk assessment.
IOTA would like to thank all members that contributed to the production of this report, but in particular, the members of Subgroup 3 (Austria, Belgium, Italy, Norway, Romania, Spain and the United Kingdom).
Registered IOTA members can access the report on IOTA’s website.