Country by Country Reporting – Ireland - DEADLINE LOOMING
Ireland, December 6 2016
Country by Country Reporting, “CbC reporting”, to the Irish Revenue must be completed by the last day of the fiscal year for which it relates e.g. for financial years ending 31 December 2016 .
Country by Country Reporting, “CbC reporting”, is part of Action 13 of the OECD/G20 Base Erosion and Profit Shifting (“BEPS”) Action Plan, the purpose of which is to enhance the transparency of tax administration on a global basis by enabling the assessment of transfer pricing risk and BEPS related risk. As Ireland has elected to be an early adopter of Action 13, CbC reporting has come into play for financial years beginning on or after 1 January 2016.
Who does it apply to?
CbC Reporting only applies to Irish companies that form part of a multinational group whose annual consolidated group revenue is in excess of €750 million in the preceding fiscal year.
What must be done?
Relevant companies are required to notify the Irish Revenue Commissioners of the status of the entity on an annual basis.
If the Irish entity is not the groups’ reporting entity then the Irish entity must notify the Revenue Commissioners of the identity and tax jurisdiction of the reporting entity who will file their CbC report. The notification to the Revenue must be completed, at the latest, by the last day of the fiscal year for which it relates e.g. for financial years ending 31 December 2016 the Revenue must be notified by the 31 December 2016. Notification is completed through ROS (revenue online system).
If the Irish entity is the groups’ reporting entity then the first CbC report must be filed 12 months after the period to which the report relates, so for financial years ending 31 December 2016 the first report must be filed by the 31 December 2017.
What information is included in the CbC report?
The detail to be reported on includes revenue, profits, taxes, number of employees among other important financial statistics for each tax jurisdiction in which the multi national group does business.
Failure to comply?
Failure to comply with the relevant reporting requirements or reporting incorrect or incomplete data could trigger a penalty of €19,045 with the possibility of further daily penalties being applied for each day thereafter that the correct report remains outstanding.
On 13th October 2016 the Revenue Commissioners published guidance in a FAQ document which provides a step by step guide to CbC notification. This can be accessed by following the below link: