On 24 September 2020, the OECD published a compilation of Phase 3 peer review reports on Country by Country (CbC) Reporting under Action 13 of the action plan on base erosion and profit shifting (BEPS). The OECD/G20 Inclusive Framework on BEPS, which consists of 137 member jurisdictions, is responsible for BEPS standard setting and peer reviews.

CbC reporting is one of the four BEPS minimum standards that countries joining the OECD’s Inclusive Framework are committed to implementing. CbC reporting is therefore subject to peer reviews by the Inclusive Framework under the BEPS follow-up and monitoring process. The peer reviews aim to ensure timely implementation that will ensure a level playing field among all jurisdictions. The annual peer reviews on CbC reporting focus on the domestic legal and administrative framework; the framework for exchange of information; and the confidentiality and appropriate use of the reports.

The third annual peer review report covers 131 jurisdictions that have provided information on the status of CbC reporting in their domestic legislation.

Domestic Legal and Administrative Framework

So far more than 90 jurisdictions have introduced into their domestic law a legal requirement for multinational enterprises to compile and submit a CbC report. Some other countries have drawn up final legislation to introduce CbC reporting but the legislation is still awaiting approval. The peer review report recommends to 41 jurisdictions that they should put in place or finalise their domestic legal framework; and recommends to 34 jurisdictions that they should make amendments to improve their existing provisions.

Framework for Exchange of Information

A total of 76 jurisdictions have put in place bilateral or multilateral competent authority agreements for the exchange of CbC reports.

Confidentiality of CbC Reports

Of the jurisdictions covered in the peer review report 76 have been assessed by the Global Forum on Transparency and Exchange of Information in relation to the confidentiality of CbC reports submitted to them and the safeguarding of the data contained in the reports. Of these, ten jurisdictions were given an action plan by the Global Forum as a result of its review and those jurisdictions are working to implement the recommendations of the Global Forum.

Appropriate Use of CbC Reports

Of the jurisdictions reviewed 82 have provided information that gives sufficient assurance to the Inclusive Framework that appropriate measures have been put into place to ensure the appropriate use of the information contained in the CbC reports sent to them.