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OECD review shows ‘big progress’ in CbC reporting

Monday, 9 September, 2019

The OECD has reported that its second phase of peer reviews of the base erosion and profit shifting (BEPS) country-by-country (CbC) reporting initiative has shown major progress in the delivery of international tax transparency, with CbC reports now meeting minimum standards in 116 jurisdictions.

CbC reporting forms Action 13 of the OECD’s BEPS initiative, and is one of the four minimum standards of the project. Participating jurisdictions are required to collect and share detailed information on all large multinational enterprises doing business in their country, including information on reported revenue, pre-income tax profit, income tax paid, and the stated capital and assets held by a company.

The OECD’s second annual peer review report demonstrates key progress made in implementation of its CbC reporting minimum standards. With more than 2,200 bilateral relationships for CbC exchanges now in place, Pascal Saint-Amans, Director of the OECD Centre for Tax Policy and Administration, said that the reviews ‘show that the BEPS measures are being implemented rapidly, consistently and globally.’

According to the report, 62 recommendations made in the first phase of peer reviews have now been addressed, while more than 80 jurisdictions have already introduced legislation to impose a filing obligation on multinational enterprises.