On 19 October 2016 the OECD announced that five more countries have signed the multilateral competent authority agreement for the exchange of country by country reports. This brings the total number of signatories to 49. The latest signatories in addition to Brazil and Latvia include the small jurisdictions of Guernsey, Jersey and the Isle of Man.
The multilateral competent authority agreements make it possible for countries to exchange country by country (CbC) reports and therefore receive information on the global activities of multinational groups, with appropriate safeguards for taxpayer confidentiality. Many countries are currently drafting and passing legislation to require parent companies of multinational groups to prepare CbC reports with information on revenue, profits, tax, accumulated earnings, employee numbers, capital and tangible assets in each jurisdiction in which the multinational group operates. These reports are seen as an important tool for tax authorities to detect base erosion and profit shifting by taxpayers.
