Thursday, 11 February 2016

31-country agreement will effectuate exchanges of CbC reports

On January 27, 31 countries signed the Multilateral Competent Authority Agreement (MCAA), allowing automatic exchange of Country-by-Country (CbC) reports described in Action 13 of the Organisation for Economic Co-operation and Development’s (OECD) Base Erosion and Profit Shifting (BEPS) Project.  The MCAA is intended to facilitate consistent and swift implementation of new transfer pricing reporting standards developed under Action 13 of the BEPS Action Plan, with the goal of enabling tax administrations to obtain a complete understanding of how multinational enterprises (MNEs) structure their operations, while also safeguarding the confidentiality of such information.
The MCAA outlines specific requirements, terms of use, and guidance for automatic exchanges of CbC reports among its signatories. Importantly, it represents a significant achievement for the OECD with respect to implementation of Action 13 and cross-border cooperation on tax matters. The MCAA also reflects the concept underpinning Action 15, the multilateral treaty instrument, that the OECD should act on a multilateral basis with respect to implementation of the final BEPS reports, in order to avoid the time-consuming negotiation of bilateral agreements.
Source & more info: PwC