In recent years there has been an international emphasis on improved standards and systems of tax transparency and an effort to combat base erosion and profit shifting (BEPS) due to governments’ need for revenue and the efforts of multinational enterprises (MNE) to minimise taxation.

Base erosion describes the act of reducing the level of taxable profits in a jurisdiction, while profit shifting involves moving the profit on an activity from one tax jurisdiction to another jurisdiction, usually to benefit from a lower tax rate.

The Organisation for Economic Co-operation and Development (OECD) aims to tackle BEPS by reforming the way in which tax systems work internationally. One tool developed by the OECD to tackle BEPS is the implementation of country-by-country (CbC) reporting.

This article discusses the history of the OECD’s CbC regime and provides an overview of CbC reporting and the implications of the Multilateral Competent Authority Agreement on the Exchange of Country-By-Country Reports signed by Bermuda in April 2016 (MCAA).

In 2013, the OECD and G20 countries adopted the Action Plan on Base Erosion And Profit Shifting (BEPS Action Plan). The BEPS Action Plan set out 15 key actions to reform the way in which tax systems work internationally and address a variety of issues surrounding tax transparency, accountability, information exchange and BEPS.

Read More

Share
Twitter LinkedIn Email Save as PDF
More Publications
25 Jun 2020 |

ILS needs a buoyant secondary market to thrive – but electronic platforms must come first

A secondary market for ILS can only emerge once the broader market fully embraces electronic platfor...

24 Jun 2020 |

Health and Wellness – Employers Duties

With the current state of COVID-19, many employees are in the midst of now returning to work and oth...

4 Jun 2020 |

Choices of law, jurisdiction must be clear

Ideally, a contract will contain both a “choice of jurisdiction” and a “choice of law” claus...

26 May 2020 |

Technology & Innovation Update Q2 2020

Technological developments have been accelerating at an unprecedented pace in Asia - the first regio...

22 May 2020 |

Reopening workplaces: employment issues

As Bermuda takes the first tentative steps in its phased reopening plan, we review some of the key p...

20 May 2020 |

Threatened insolvency: Personal Exposure of Directors

During the challenging economic environment created by the COVID-19 pandemic, business resilience an...

Contributors: Jerome Wilson
12 May 2020 |

Pandemic-induced market dynamics could result in Class of 2020

Current insurance and reinsurance market dynamics suggest that it could be an opportune time for sta...

7 May 2020 |

Electronic signing of documents and COVID-19

The COVID-19 outbreak has transformed the way we operate in all aspects of life, including and espec...

29 Apr 2020 |

Why the development of a secondary market will transform ILS

The ILS market has become an increasingly important feature in the risk transfer landscape in recent...

23 Apr 2020 |

Duties and Liabilities of Directors of Bermuda companies

During the challenging economic environment created by the COVID-19 pandemic, directors need to be e...

Contributors: Jerome Wilson