As part of the OECD’s Base Erosion and Profit Shifting (BEPS) initiative, mandatory Country-by-Country (CbC) reporting is an imminent prospect for multinational corporations (MNCs) across the globe. With the first reporting periods for some jurisdictions taking effect as early as 1 January 2016, companies now have to rapidly plan how they will comply with these CbC reporting requirements.
Using prescribed templates, MNCs will be required to report revenue, profit before income tax, income taxes paid and accrued, number of employees, stated capital, retained earnings, and tangible assets in each jurisdiction in which they operate.
In order to mitigate the significant risk of inaccurate and/or incomplete disclosures, it is essential that MNCs understand and have a plan to deal with the two key practical challenges they will face.
The collection of relevant and accurate data in a consistent format across the whole Group, made more difficult given the information required is often not available in internal systems on a country-by-country basis.
DATA CONSOLIDATION, RECONCILIATION AND REPORTING
It is crucial not only to be able to consolidate and report the data in the required format, but also to be able to reconcile public financial statements, legal entity books and local tax returns with the disclosures provided in the templates.
In respect of both of these challenges, and given the size, diversity and geographical spread of many MNCs, it is critical that MNCs leverage the right technology in order to ensure they are equipped to be able to comply with the CbC reporting requirements.
CCH Integrator™ Country-by-Country Data Collection & Reporting is an “out-of-the-box” web-based software solution that can be quickly and easily deployed by MNCs to facilitate the preparation and disclosure of accurate and auditable CbC reporting information.
It gives MNCs the ability to streamline and automate the collection, consolidation, validation and reporting process, saving valuable time and resources. It also provides the visibility required to better manage global tax risk.
There are four key features of the CCH Integrator Country-by-Country Data Collection & Reporting technology which make this possible.
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