Complying with BEPS CbC reporting will lift up three areas of concern for CEOs of multinational corporations:
Significantly increased demands on tax departments' resources in order to prepare the data for the new CbC reporting template and manage the increased audit activity that will result from this new requirement;
Significant data management challenges in gathering the data required for the CbC reporting template, and implementing a recommended best practice of reconciling public financial statements, legal entity books, and local tax returns to the CbC templates; and
Potential risk that confidential information provided in the template could be disclosed to the public through information leaks or formal disclosure requirements by individual countries.
Please remember that the Tax Matters provides information for educational purposes, not specific tax or legal advice. Always consult a qualified tax or legal advisor before taking any action based on this information.
Nancy Manzano is a Director in the Chief Tax Office at Vertex, responsible for insight and thought leadership regarding in-house corporate tax department operations, spanning income, global and transaction tax. A seasoned tax professional, Nancy is a licensed C.P.A., has a B.S. in business administration from Drexel University and an M.S. in taxation from Widener University.