Tax & Accounting Blog

UK House of Commons Committee Pushes For Country by Country Reporting

Corporate Income Tax, Global Tax Compliance, ONESOURCE, Transfer Pricing, US Income Tax Compliance September 13, 2012

The Commons’ International Development Committee recommends country by country reporting by multinationals in a report released August 23, 2012. The report recommends unilateral adoption of country by country reporting and the continued support and encouragement of adoption within the EU of the concept.

One focus of the report is the need to promote private sector growth and development while ensuring the correct amount of tax is paid. Various tax advocacy groups support the effort in order to more efficiently allow authorities to detect tax avoidance by multinationals.

The continued effort to obtain detailed information on intercompany transactions either through existing tax treaties or newly adopted Exchange of Tax Information Agreements highlights the increasing importance of preparing and maintaining contemporaneous transfer pricing documentation.

It goes without saying that the various reports should support the requirements within each jurisdiction and be consistent with each other. In addition to having the proper documentation in place, companies should be mindful of maintaining the agreements, worksheets and other data supporting the documentation.

Would your company be able to prepare for unilateral adoption of country by country reporting? 

Watch a video to learn how other companies are being strategic about their transfer pricing and benefiting from ONESOURCE Transfer Pricing 

This article was originally posted on CheckPoint. For more information, click here.