INCREASED REPORTING REQUIREMENTS FOR MULTINATIONAL COMPANIES
Earlier this month the Organisation for Economic Co-operation and Development (OECD) announced a major consultation on the future of international tax reporting.
While the focus of OECD last year has been on tax evasion and avoidance issues, this year G20 countries have approved further action on tax transparency, and the OECD is collecting opinions on country-by-country reporting. The aim is to propel companies into disclosures of their tax and profit figures for each jurisdiction.
One of the Big-4 have published their concern with this move, saying that these increased reporting requirements could alarm large corporations, over complex compliance procedures when reporting cross border payments between companies of the same group and withholding taxes.