US to exchange country-by-country reports with Australia, Estonia

The US IRS today announced that it has entered into separate agreements with Australia and Estonia to exchange country-by-country reports on multinationals.

The competent authority agreements provide the mechanism by which the country-by-country reports will be exchanged between tax authorities of the United States and Australia and the United States and Estonia.

The exchange puts into effect 2015 agreements reached by OECD and G20 nations under the base erosion profit shifting (BEPS) plan designed designed to give tax authorities a better picture of the activities of multinational firms. The reports will help authorities assess whether there is a risk that a multinational firm is not paying the correct amount of tax.

Don't miss the latest tax and transfer pricing news! Sign up for our FREE newsletter