AS part of continuing efforts to boost transparency
by multinational enterprises (MNEs), 31 countries signed today the Multilateral
Competent Authority Agreement (MCAA) for the automatic exchange of Country-by-Country
reports. The signing ceremony marks an important milestone towards implementation
of the OECD/G20 BEPS Project and a significant increase in cross-border
co-operation on tax matters.
The MCAA will enable consistent and swift implementation of new transfer pricing
reporting standards developed under Action 13 of the BEPS Action Plan. It will
ensure that tax administrations obtain a complete understanding of the way
MNEs structure their operations, while also ensuring that the confidentiality
of such information is safeguarded.
“Country-by-Country
reporting will have an immediate impact in boosting international co-operation
on tax issues, by enhancing the transparency of multinational enterprises’
operations,” said OECD Secretary-General Angel Gurría. “Under
this multilateral agreement, information will be exchanged between tax administrations,
giving them a single, global picture on the key indicators of multinational
businesses. This is a much-needed tool towards the goal of ensuring that companies
pay their fair share of tax, and would not have been possible without the BEPS
Project.”
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