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.
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.
Bob Norton, Specialist Leader at Deloitte, was formerly Chief Income Tax Officer in the Chief Tax Office (CTO) of Vertex, Inc. Bob has more than 30 years of corporate tax, accounting and technology experience from both public accounting and global industry. Prior to working at Vertex, Bob held several senior financial management positions running global tax, treasury, and merger and acquisition functions for Siemens' Medical IT division. Bob is a noted author and speaker and sits on the Editorial Advisory Board of Financial Executives magazine and is a member of FEI, the Tax Council, AICPA, PICPA, and the Association for Computers and Taxation. He is a CPA and received a B.S. in Accounting from the Pennsylvania State University and an M.S. in Taxation with honors from Villanova University.