27 January 2017, Gabon, Hungary, Indonesia, Lithuania, Malta, Mauritius and Russia signed the Multilateral Competent Authority Agreement for Country-by-Country Reporting (CbC MCAA). Total signatories to the agreement are now 57, the OECD said.
The CbC MCAA is designed to give effect to OECD/G20 base erosion profit shifting (BEPS) standards, developed under action 13, concerning transfer pricing documentation and country-by-country reporting. It sets out uniform rules and procedures to implement the exchange of reports between nations.
Under these standards, large multinationals must report to their country of residence specified information regarding each jurisdiction in which the group operates, including revenues, profits, income tax paid, stated capital, accumulated earnings, number of employees, and tangible assets. That information will then be shared with other countries’ tax administrations so that assessments can be made regarding whether is a risk the multinational is engaging in tax avoidance.
On 6 January, the OECD announced that three more countries – Bermuda, Côte d’Ivoire and Kazakhstan – have committed to participate in international base erosion and profit shifting (BEPS) discussions and implement minimum standards. It brings the total number of countries and jurisdictions participating in the project to 94.