FIVE new
jurisdictions have signed tax co-operation agreement to enable automatic
sharing of country-by-country information.
As part of continuing efforts to boost transparency by multinational enterprises
(MNEs), Brazil, Guernsey, Jersey, the Isle of Man and Latvia signed the
Multilateral Competent Authority Agreement (MCAA) for the automatic exchange
of Country-by-Country reports, bringing the total number of signatories to
49. This marks a further milestone towards the implementation of the OECD/G20
BEPS Project and a significant increase in cross-border cooperation on tax
matters.
The MCAA will enable consistent and swift implementation of new transfer
pricing reporting standards developed under Action 13 of the BEPS Action
Plan. It will ensure that tax administrations obtain a complete understanding
of the way MNEs structure their operations through the annual automatic exchange
of country-by-country reports, while also ensuring that the confidentiality
of such information is safeguarded.
Country-by-country reporting will require MNEs to provide aggregate information
annually, in each jurisdiction where they do business, relating to the global
allocation of income and taxes paid, together with other indicators of the location
of economic activity within the MNE group. It will also cover information about
which entities do business in a particular jurisdiction and the business activities
each entity engages in.
On the occasion of the signing in Paris, OECD Secretary-General Angel Gurría
discussed the international tax agenda with Deputy Lyndon Trott, of Guernsey,
Howard Quayle MHK, of Isle of Man, and Senator Ian Gorst, of Jersey. “I congratulate
Brazil, Guernsey, Jersey the Isle of Man and Latvia on their efforts toward implementing
the BEPS package, and on their important role in advancing greater international
tax cooperation and transparency,” Mr Gurría said.
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