Public CbC reporting – risks and challenges

15 July 2021

Representatives of the EU Member States agreed on 1 June 2021 a joint position on a draft directive concerning publication of data disclosed in Country-by-Country (CbC) reports.

Objectives and terms of the EU Directive

The directive aims to increase tax transparency. It is also designed to improve combating of tax frauds which transfer profits to other countries, including tax havens.

The content of CbC reports is to be publicly available in the future. The directive will affect corporate groups operating within or outside the EU whose consolidated turnover per tax year is at least 750 million euro.

The reporting deadline will be 12 months of the end of financial year. Member States will have 18 months to transpose the directive into their national legal systems.

CbCR Risk Assessment

The growing transparency connected with the publication of CbC reports may pose risks for multinational enterprises as wrong conclusions may be drawn when it comes to profit distribution or tax payments.

In order to manage and mitigate the risks we are offering a tool called CbCR Risk Assessment. It offers you to get prepared in advance for enquiries from tax authorities and non-governmental organisations. The tool assesses CbCR data based on pre-defined key figures.