Country by Country Reporting (CbCR) is more than just another compliance burden. Knowing how to interpret the technical rules and ensuring you are meeting your filing obligations is just one aspect. Early consideration of what CbCR says about your organisation’s tax structure, how tax authorities in the UK and overseas will view and respond to the data you are providing, and determining how you will access the required data, are all crucial.
Even if your group doesn’t exceed the €750million turnover threshold, you may still be expected to produce Master and Local files, both of which require significant quantitative analysis.
What practical steps can you take now to ensure you are ready?
CbCR also provides an opportunity for you to review your company’s tax approach at a more strategic level with senior management. How does it fit into the broader context of your corporate agenda on governance, policy and transparency? Has it been factored into any conversations regarding technology investment? Now is the time to ensure that your CbCR obligations are aligned with wider tax and finance reporting requirements as well as utilising wider ERP and Business Intelligence processes.