How is CbC reporting a data management challenge?
Typically, a company's financial accounting systems are set up to support publicly filed financial statements and management reporting. Rarely do they support tax reporting. As a result, CbC reporting will severely test the corporate tax departments' ability to collect, tie-out and present their financial and non-financial data in the format required by the CbC reporting template. To improve accuracy and provide a defensible audit trail, CbC reporting necessitates a reconciliation of the company’s published financial statements to its legal entity books and accounts in all currencies and in accounting standards; its local tax returns filed in each country with the filed CbC reporting template.
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Please remember that the Vertex blog 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. The views and opinions expressed in the Vertex blog are those of the authors and do not necessarily reflect the official policy, position, or opinion of Vertex Inc.
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