BEPS Action 13: TP Documentation and CbC Reporting

1. BEPS Action 13: TP Documentation and CbC Reporting
Erki Uustalu
Tax Counsel,
Eesti Energia AS (Enefit)
Erki.uustalu@enefit.com
Madrid, 4 May 2015
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2. Timeline
- 16 September 2014: Guidance on Transfer Pricing Documentation and
Country-by-Country Reporting
- Revised chapter of the OECD Transfer Pricing Guidelines, which sets forth a
three-tier approach to transfer pricing documentation
- 6 February 2015: Guidance on the Implementation of Transfer Pricing
Documentation and Country-by-Country Reporting
- Timing and filing of CbC reports; groups required to file CbC reports; conditions
for obtaining and use of CbC reports; framework for government-to-government
exchange of reports
- April 2015: Comprehensive implementation package for government-to-
government exchange of CbC reports
- Addressing key elements of domestic legislation and secondary mechanisms
- 2020 Review of implementation
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3. Why and what?
• To ensure that taxpayers give
appropriate consideration to
transfer pricing and in reporting the
income derived from related-party
transactions in their tax returns
• To provide tax administrations with
the information necessary to
conduct an informed transfer
pricing risk assessment
• To provide tax administrations with
useful information for purpose of
thorough audit of transfer pricing
practices
Master file
High-level overview of the MNE
group business
Local file
Detailed information on
specific group transactions
CbC Report
Aggregate, jurisdiction-wide
information of prescribed indicators
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4. Who and when?
CbC report by all MNE groups with the revenue of EUR 750 million or
more
No exceptions: No special industry exemptions, no exemptions for
investment funds, non-corporate entities, non-public corporate
entities
For fiscal years beginning on or after 1 January 2016. Not later than 12
months after the close of the relevant fiscal year of the MNE group.
- „fiscal year“ refers to the consolidated reporting period for
financial statement purposes
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5. Whom?
CbC report filed to the country of the ultimate parent, who
automatically shares the information with the jurisdictions where MNE
operates
Obligation moving to the next-tier parent (secondary mechanism) if:
- Ultimate parent does not require CbC reporting
- Competent authority agreements not concluded in time
- Established failure to exchange the information in practice
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6. How?
Confidentiality
Protections of confidentiality to an extent at least equivalent to the
protections applicable if information were delivered under Multilateral
onvention on Mutual Administrative Assistance, TIEA or tax treaty that
meets internationally agreed standards
Consistency
Same standard template in all jurisdictions. No less no more
Appropriate use
Used for high-level transfer pricing risk assessment purposes and
does not substitute detailed transfer pricing analysis
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7. CbC Form
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8. CbC Form
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9. THANK YOU!
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