Tax compliance is moving at a rapid pace, with almost constant new schemas being released – changing existing legislation and, on occasion, creating completely new reporting requirements. An example of this is HMRC and the Irish Revenue initiatives which follow BEPS (Base Erosion and Profit Shifting) action 13. This has led to the requirement of large multinational companies with a turnover in excess of 750 million Euros, that have a presence in the UK or Ireland, to submit a Country-by-Country Report (CbCR) with the first filing deadlines starting in 2017.
Developments within HMRC and the Irish Revenue, around the initial schema, are currently in motion with the ultimate goal of having greater transparency. This means that multinational corporations will need to deliver accurate reports.
The following should be considered when implementing Country-by-Country Reporting:
- New Schema – the first submission will always be the hardest as everyone is preparing new data for submission and similarly the tax authority will be processing the data for the first time resulting in a potential increase in enquiries.
- Integrated Systems – how well are your ERP systems integrated to export the data required?
- Quality of Data – Is the data relevant and correct? How can you validate this and keep track of the progress?
- Risk Mitigating – Can you identify the areas of risk? How will you address these? What will they look like to the Tax Authority?
- Schema Updates – With any legislation as it evolves, do you have the resource to keep on top of these changes?
- Additional Responsibilities – This is just another string to your bow and the day job does not disappear, are you able to manage the increase in compliance management duties while still saving as much time as possible?
To deliver accurate Country-by-Country reports, companies will need to either outsource this new compliance workload, which could result in expensive fees, or adopt a robust software solution to help automate and validate the data gathered from multiple sources and jurisdictions.
The Solution – Alphatrac’s CbCR Function
Alphatrac helps companies to effectively manage their tax compliance responsibilities. With the introduction of CbCR, we have designed a new function, utilising the existing Alphatrac product & functionality, and created a platform which is the best solution to support an accurate submission of a Country-by-County Report.
Some of the beneficial outcomes Alphatrac Country-by-Country Reporting software can bring to your organisation are:
- Efficient Accumulation – Automated collection of all the relevant information from each jurisdiction to be compiled into the required OECD format in a chosen base currency.
- Risk Analysis – Comprehensive checks are done in the system so you can effectively identify any areas of risk and action these before submission.
- Event Tracking – More than just an audit trail, Alphatrac can identify who, what and when information has been amended, constantly monitoring changes throughout the entire processes giving you the maximum amount of visibility on the data.
- Real-time Updates – Information is updated across the whole system instantly so all users can see live updates on the data progress.
- Single Repository – Everything can be held in one location. Alphatrac is designed to hold all relevant information in one place. This is especially useful for global teams to input & review data without the need to send anything via email.
- Personalisation – Each user can have a personalised dashboard to show only the relevant information snapshots. This helps the entire team as a whole from a management/ review level to those who will be managing the CbCR process.
- Periodically Updated – We will be constantly reviewing the schema requirements so you don’t have to. Any updates to legislation will be reviewed and built into the Alphatrac product for and released to you accordingly ensuring you always have the most up-to-date software platform.
Country-by-Country reporting needn’t be a daunting task, with Alphatrac CbCR you can start familiarising yourself with the process and prepare your submissions for the Tax Authority. In addition to this, our team of qualified tax professionals are on hand to assist you with the implementation of CbCR and support you throughout the end-to-end process.
For more information or to book a demonstration, contact us on 01784 410 369 or email us here.