Shake up on the way for rules on how to report international tax
BIG changes may be on the horizon for multinational firms, after a major consultation on the future of international tax reporting was announced by the Organisation for Economic Co-operation and Development (OECD).
The OECD is canvassing opinion on country-by-country reporting after the G20 countries endorsed further action on tax transparency. The move would be designed to prompt companies to reveal their tax and profit figures for each jurisdiction.
KMPG’s head of tax and pensions, Jane McCormick, said that the change could unnerve large corporations: “Businesses will be concerned about the potential compliance burden particularly given the proposals to report cross border payments between companies in the group and withholding taxes”.