OECD updates guidance on country-by-country reporting

The OECD’s inclusive framework on base erosion and profit shifting (BEPS) has released additional guidance to give certainty to tax administrations and multinationals on the implementation of country-by-country reporting (CBCR), in line with action 13 of its plan

The additional guidance addresses two specific issues: the definition of total consolidated group revenue and whether non-compliance with the confidentiality, appropriate use and consistency conditions constitutes systemic failure.

The OECD has released a document containing the complete set of guidance related to CBCR issued so far, alongside a compilation of the approaches adopted by jurisdictions with respect to issues where the guidance allows for alternative approaches. These documents will continue to be updated with any further guidance that may be agreed.

In addition, the BEPS inclusive framework has also approved updates to the results for preferential regime reviews conducted by the forum on harmful tax practices (FHTP) in connection with BEPS action 5.

Two regimes in Barbados - the international financial services and the credit for foreign currency earnings/credit for overseas projects or services - were judged as ‘potentially harmful’. In a ministerial letter Barbados committed to amend these regimes to meet the necessary criteria within the FHTP's agreed timelines. As a result, the conclusions for these two regimes has been updated to ‘in the process of being amended’.

Canada's regime for international banking centres (IBCs) was determined to be "potentially but not actually harmful" by the FHTP in the 2004 progress report. Canada has abolished the IBC regime, with limited grandfathering which is consistent with the FHTP guidance and therefore the conclusion for this regime is updated to ‘abolished’.

Guidance on the implementation of CRCR is here.

Compilation of approaches adopted by jurisdictions is here.

Harmful Tax Practices - 2017 Progress Report on Preferential Regimes is here.

Report by Pat Sweet

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