BEPS and EU Requirements for Country-by-Country Reporting Dr. - - PowerPoint PPT Presentation

▶
beps and eu requirements for country by country reporting
SMART_READER_LITE
LIVE PREVIEW

BEPS and EU Requirements for Country-by-Country Reporting Dr. - - PowerPoint PPT Presentation

Dec 15, 2022 141 likes •319 views

BEPS and EU Requirements for Country-by-Country Reporting Dr. Raffaele Petruzzi Florian Navisotschnigg Symposion on Transparency and Exchange of Information 2 March 2017 Institute for Austrian and International Tax Law www.wu.ac.at/taxlaw

slide-1
SLIDE 1

Institute for Austrian and International Tax Law  www.wu.ac.at/taxlaw 1

BEPS and EU Requirements for Country-by-Country Reporting

  • Dr. Raffaele Petruzzi

Florian Navisotschnigg

Symposion on Transparency and Exchange of Information 2 March 2017

slide-2
SLIDE 2

Institute for Austrian and International Tax Law  www.wu.ac.at/taxlaw 2

Introduction

  • October 2015: OECD BEPS Action 13 Final Report on

“Transfer Pricing Documentation and Country-by-Country Reporting”

  • increasing transparency about the global value chain of MNEs,

in order to perform a first assessment as regards transfer pricing risks and BEPS

  • April 2016: EC proposal to make certain data of the

CbCR available to the public

  • May 2016: EU adopts the OECD standards on CbCR as

part of its Anti-Tax-Avoidance-Package

slide-3
SLIDE 3

Institute for Austrian and International Tax Law  www.wu.ac.at/taxlaw 3

Content: Table 1

Overview of allocation of income, taxes and business activities by tax jurisdiction

slide-4
SLIDE 4

Institute for Austrian and International Tax Law  www.wu.ac.at/taxlaw 4

Content: Table 2

List of all the Constituent Entities of the MNE group included in each aggregation per tax jurisdiction

slide-5
SLIDE 5

Institute for Austrian and International Tax Law  www.wu.ac.at/taxlaw 5

Content: Table 3

Additional Information

slide-6
SLIDE 6

Institute for Austrian and International Tax Law  www.wu.ac.at/taxlaw 6

Preparing the Report

  • Key challenges

 ensure validity and comparability of the provided information  avoid misinterpretation

  • Questions over how to populate the CbCR

 Sources of data  Application Questions

slide-7
SLIDE 7

Institute for Austrian and International Tax Law  www.wu.ac.at/taxlaw 7

Sources of Data

  • Free choice of sources of data
  • Consistent use of the same sources
  • Top-down vs bottom-up approach
slide-8
SLIDE 8

Institute for Austrian and International Tax Law  www.wu.ac.at/taxlaw 8

Application Questions

  • Vague definitions
  • Number of inconsistencies
  • Risk of data misinterpretation or even data

misuse (formulary apportionment)

slide-9
SLIDE 9

Institute for Austrian and International Tax Law  www.wu.ac.at/taxlaw 9

Information Exchange

  • EU

 Administrative Cooperation Directive

  • OECD:

 Multilateral Convention on Administrative Assistance in Tax Matters  Bilateral Tax Conventions  Tax Information Exchange Agreements

slide-10
SLIDE 10

Institute for Austrian and International Tax Law  www.wu.ac.at/taxlaw 10

Information Exchange (cont’d)

  • Confidentiality
  • Appropriate use

 Assessing high-level transfer pricing risks  Evaluating other BEPS related risks  Economic and statistical analysis

slide-11
SLIDE 11

Institute for Austrian and International Tax Law  www.wu.ac.at/taxlaw 11

Double Taxation

  • Increase of double taxation expected
  • Remedies of MNEs are insufficient

 EU Arbitration Convention  BEPS Action 14

slide-12
SLIDE 12

Institute for Austrian and International Tax Law  www.wu.ac.at/taxlaw 12 12

Inclusive Framework

Source: OECD

slide-13
SLIDE 13

Institute for Austrian and International Tax Law  www.wu.ac.at/taxlaw 13 13

Implementation BEPS 13 (Exchange of CbCR)

Source: OECD

slide-14
SLIDE 14

Institute for Austrian and International Tax Law  www.wu.ac.at/taxlaw 14

Conclusions

  • Pros: enhanced transparency
  • Cons: compliance burden, application questions,

usefulness of the data

  • Tool to enable tax administrations to “ask the right

questions”? Need to read it together with MF and LF

  • Questions on sharing information and on data publicity
  • OECD Review 2020
  • Lower threshold?
  • Public information?
slide-15
SLIDE 15

Institute for Austrian and International Tax Law  www.wu.ac.at/taxlaw 15

Conclusions

  • Potential to “change behaviors”,
  • However need for
  • Resources (personnel and technical)
  • Training
  • Cooperative compliance tools (joint audits, rulings,

APAs)

  • Dispute resolution tools (MAP, arbitration, …)
slide-16
SLIDE 16

Institute for Austrian and International Tax Law  www.wu.ac.at/taxlaw 16

Department of Public Law and Tax Law Institute for Austrian and International Tax Law Welthandelsplatz 1, Building D3, 1020 Vienna, Austria

  • Dr. Raffaele Petruzzi, LL.M.

Florian Navisotschnigg raffaele.petruzzi@wu.ac.at florian.navisotschnigg@wu.ac.at www.wu.ac.at/taxlaw, www.wu.ac.at/dibt

Many thanks for your attention!