UK has introduced Country-by-Country (CbC) reporting requirement for domestic entities with consolidated group revenue of €750 million or more for an accounting period. The Commissioners may give a general or specific direction to a reporting entity requiring it to provide Revenue and Customs with such information (including copies of any relevant books, documents or other records) as may be specified in the direction for the purposes of determining whether information contained in a CBC report filed by that entity is accurate. The regulations will apply to multinational groups for accounting periods beginning on or after 1 January 2016.

The CbC report must be submitted by a company resident in UK that is the parent company of a corporate group. A parent company is a company that is not a subsidiary of any other company in UK. The Ultimate Parent Entity is not required to file the equivalent of a country-by-country report in the jurisdiction in which it is resident for tax purposes in respect of the accounting period to which the report relates (or where the Ultimate Parent Entity is resident for tax purposes in more than one jurisdiction, no such requirement to file applies in any of those jurisdictions.

The report must cover group revenue, distinguishing between related and unrelated parties; accounting results before corporate income tax (or similar taxes); and corporate tax (or similar taxes) paid or accrued, including withholding tax.

Non-filing of CbC report will trigger penalties of £30 and penalty of £60 for each subsequent day on which the failure continues. The person is liable to a penalty not exceeding £3,000 in respect of each CBC report to which the inaccuracy relates.