In my last post I discussed making CbC reporting a strategic issue. The second step is to:
Assess IT and Tax Resource Needs - It is critically important that corporations immediately assess if their existing financial accounting systems will allow their companies to comply with these new reporting requirements. Many companies will also need to actively consider technology solutions to collect, store, analyse, and prepare the CbC reporting templates in an accurate and defensible fashion. Also, corporate tax departments should evaluate their internal processes and if additional staff may be required to deal with the compliance and tax audit management requirements that will likely arise as a direct result of the CbC reporting template. All of these added costs will need to be factored into the corporate budget and discussed with senior management, audit committees, and other stakeholders as soon as possible.
Look for my next post when I will outline the third step.
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.