US agrees to exchange country-by-country tax reports with Liechtenstein and Mauritius

US IRS has announced that it has agreed to exchange country-by-country reports on large multinationals with Liechtenstein and Mauritius.

The agreement between the US and Liechtenstein was reached May 9; the agreemenmt with Mauritius was reached April 27, the IRS said.

Both agreements implement a country-by-country reporting scheme for multinationals established by OECD and G20 countries in 2015 as a result of base erosion profit shifting (BEPS) plan negotiations.

The tax reporting scheme is designed to aid tax authorities in determining whether there is a risk that large multinationals operating within their borders are engaging in tax avoidance through inappropriate transfer pricing or other means.

 

 

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