OECD Issues Progress Update On CbC Reporting Implementation
On May 4, 2017, the OECD released a full list of automatic exchange relationships among jurisdictions under the Multilateral Competent Authority Agreement on the exchange of country-by-country reports (CbC MCAA).
The Agreement provides for signatories to automatically exchange CbC reports multilaterally, as proposed by base erosion and profit shifting (BEPS) Action 13.
The OECD said the framework will help ensure that tax administrations obtain a complete understanding of how multinationals structure their operations, while also ensuring the confidentiality of such information is safeguarded.
The OECD said that more than 700 automatic exchange relationships have now been established among jurisdictions committed to exchanging CbC reports as of 2018, including those between European Union member states under EU Council Directive 2016/881/EU. The first exchanges are expected to take place in June 2018.
According to the OECD, Some jurisdictions also continue to work towards agreeing bilateral competent authority agreements for the automatic exchange of CbC reports with specific partners under tax treaties or tax information exchange agreements, such as the United States.