Public Country-by-Country reporting introduced in the EU

11 November, 2021

CBC Reporting

Today the European Parliament adopted the legislation for public country-by-country reporting. The adoption means that member countries have 18 months, after the legislation enters into force, to introduce national legislation which mandates multinational companies to disclose certain CbC data. The legislation also covers foreign groups with EU-based entities.

The new compliance requirement may want you to consider analyzing your CbC figures thoroughly. In many groups, investor relations will get involved in one way or another since investors, media, and the wider public will have access to your CbC figures. Public figures are often scrutinized, and the public may ask the group questions. A proper analysis before the release of the figures may be prudent.

Member states may also allow undertakings to defer the disclosure of information items for a limited number of years since the disclosure can be seriously prejudicial to the commercial position. Any deferral may require that the operations get involved in the analysis to assess whether a disclosure is prejudicial.

Worth noting is that an auditor has to make a statement whether the report was published correctly.

Click on the link below to read more.
https://www.europarl.europa.eu/news/en/press-room/20211108IPR16839/corporate-tax-transparency-meps-okay-new-country-by-country-reporting-rules

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