Actively Securing CbCR Data Sharing

  • November 04, 2016

“Privacy is not for the passive.”
- Jeffrey Rosen

“Security is a not a product, but a process.”
- Bruce Schneier

These insights from two leading data security and privacy experts happen to describe the purpose of a new tax policy/technology forum comprised of leaders from multinational enterprises (MNEs), worldwide governments, non-governmental organizations (NGOs), and global software and services companies, including Vertex.

The forum’s mission is to address the growing concerns about the government-to-government sharing of country-by-country reporting (CbCR) data that many MNEs will soon submit in accordance with Action 13 of the OECD’s Base Erosion and Profit Shifting (BEPS) effort. These concerns, expressed with growing urgency by tax executives and other leaders within MNEs, center on the degree to which the government-to-government exchange of sensitive tax and performance information (contained in the CbC reports) will be kept secure and private.

In mid-September, the forum convened at Vienna University in Austria. The meeting’s purpose was to discuss the current state of Action 13 implementation, possible future OECD actions, and potential ways to bolster data security and data privacy when governments begin sharing CbC reporting data.

These discussions demonstrated renowned security technologist Bruce Schneier’s classic assertion that security is a process that involves careful attention to both the human and technological enablers of secure data sharing. Forum participants agreed to continue meeting in the months ahead.

The discussions also demonstrate George Washington University law professor and co-editor of “Constitution 3.0: Freedom and Technological Change” Jeffrey Rosen’s point that data privacy is not for the passive. We’ll keep you posted as Vertex and other forum members continue to actively seek ways to fortify the security of tax data sharing.

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.

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