BEPS Country-by-Country Reporting5 Considerations to Ensure Readiness

We Consulted Our Greatest Resource – You!Countries across the globe are underway with BEPS Country-by-Country (CbC) reporting—and U.S. requirements will be finalized soon.

Corptax sat down with an expert panel of clients to understand what they see as their main challenges and best opportunities for success.

By keeping our finger on the pulse of changing regulations and compliance requirements, we build that knowledge into our software—making it work seamlessly in a single-platform to enable your success, regardless of business pressures.

The following slides offer key considerations to ensure you are ready for BEPS Country-by-Country reporting.

1. Simulate a 2017 Filing Using 2015 Return Data

Many companies want to understand the level of work required to complete a CbC return, and if their current technology, workflows and processes are up to the task. Moreover, doing a comprehensive test-run today will help companies assess:

• Completeness and consistency of data• What transfer pricing policies say about the organization• If business practices need to change now to mitigate risk later

2. Easy and Accurate Consolidation of Data

U.S. multinationals with annual revenues in excess of $850 million average over 200 companies in the fold. With just one CbC report required, a vast volume of data related to numerous entities must be consolidated.

It’s important to have a system that:• Consolidates data correctly to avoid misrepresentation• Streamlines consolidation while preserving source data and

relationships among entities• Allows users to drill down to entity/transactional-level data to

understand and analyze it• Allows users to extract information in the format of the CbC report• Automatically updates data when changes occur

3. Consistent Treatment of DataWhether you report from the top down or bottom up, the end result is the same: data used on the federal tax return must be reused for CbC reporting. Therefore, companies need the ability to:

• Easily see and centralize transaction-level data that was reported on all forms (5471, 8858, 8865, etc.), in order to reclass it for CbC reporting

4. Significance of Current Transfer Pricing Policies

With finalized regulations around the corner, now is the time to analyze and define transfer pricing positions. Good documentation will make CbC filing much easier and help spot anomalies in data before auditors do.

Some questions to ask:• Do entities have similar or dissimilar transfer pricing

methodologies? Different policies may be favorable to the jurisdictions that entities are in, but could raise questions around inconsistency.

• Will conflicting transfer pricing policies be more apparent when the information appears in a single report?

• Is it easy to produce transfer pricing graphs and charts to support positions?

5. Sharing Final Data with Local CountriesToday, many companies simply collect data from their foreign entities to prepare and file the tax return. Under new regulations, foreign entities will have reporting requirements as well—and should use data consistent with their parent company’s data.

For each foreign entity, ask: • How will the parent company share e-filed data back with their

local jurisdictions?

Your Best Path Forward….As you consider next steps, remember—you don’t need to go it alone. You have options to tap into firms, peers, associations and vendors, all with the expertise to help you plan a strategy and develop a system that works for your structure.

Many companies are leveraging Corptax® BEPS CbC to prepare for and meet finalized Country-by-Country reporting requirements. To see how Corptax BEPS CbC streamlines the process, maintains data consistency and models outcomes of new transfer pricing positions, view the webinar.

Need to accelerate BEPS planning? Corptax Professional Services offers three levels of engagement to help you get started now.

For more information about Corptax BEPS CbC, call 866.689.9872 or contact info@corptax.com, today.