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Understand and manage the impact of country by country reporting

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?

  1. Assess your group’s filing obligations. Where you need to file and, for non-UK parented groups, whether you have to prepare the whole group CbCR, a UK CbCR, or a combination of both.
  2. Undertake a dry run to assess the risks that will arise when the group is required to report.
  3. Review your processes and governance. Do you need additional resource to manage CbCR implementation and ongoing reporting? Do you have adequate frameworks to ensure accurate reporting and execution of your transfer pricing related policies? Who will take responsibility for collating and filing?
  4. Evaluate your technology capabilities to ensure they can support the relevant data extraction required for CbCR, as well as wider transparency and tax reporting requirements.

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.

Contact us

Stuart MacPherson

Stuart MacPherson

Director, PwC United Kingdom

Tel: +44 (0)7703 562384

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