Publication of CbCR data and lowering of the turnover threshold

With Portugal's Council Presidency, the issue of public CCCR is once again gaining in importance.* In practice, this is about making it accessible to the general public which company has to pay how much tax in which country.

The idea behind this is that in the case of "wrong" behaviour, a certain public pressure should be built up on the companies concerned. This would, so to speak, create a "compulsion" to act "correctly" in the area of taxes. The example of Australia** should be pointed out here. The first tax information has already been published there**.

It is questionable to what extent the CbCR data are suitable for this purpose, since knowledge of the subject of taxes is assumed. Whether a public CbCR will also lead to an expansion of data collection remains to be seen.

The extensions of the CbCR scope mentioned in the two previous blogs on CbCR are not the last possible steps.

The BEPS 13 Review clearly points out that the exemption threshold for CbCR of €750 million could or should be adjusted.**** Depending on the new exemption threshold to be defined, this could lead to a significant expansion of the companies obliged to CbCR. It should be noted here that CbCR already represents a sometimes considerable burden even for large companies. It remains to be seen to what extent smaller companies can cope with the CbCR burden.

Taxpayers should therefore continue to follow the topic of CbCR closely.

 

* https://bit.ly/3akpVxD
** https://www.ato.gov.au/business/large-business/corporate-tax-transparency
*** https://www.afr.com/wealth/tax/revealed-australia-s-top-10-biggest-corporate-taxpayers-20201210-p56m8n
**** http://www.oecd.org/tax/beps/public-consultation-document-review-country-by-country-reporting-beps-action-13-march-2020.pdf