The US IRS today announced that it has entered negotiations with Greece for a bilateral competent authority agreement to exchange country-by-country reports on multinationals.
Reaching agreement would help put into effect a 2015 deal reached by OECD and G20 nations under the base erosion profit shifting (BEPS) plan designed to give tax authorities a better picture of the activities of multinational firms.
The country-by-country report is typically filed in by the MNE parent company in its country of residence and then shared by that country’s tax authority with other countries in which the MNE operates. In the US, the reports are shared under the terms of bilateral competent authority agreements.
The reports will help tax authorities assess whether there is a risk that a multinational firm is not paying the correct amount of tax through improper transfer pricing or through other means.