DAC4/Country-by-Country (CbC) Reporting

Overview

What is Country-by-Country (CbC) Reporting?

CbC Reporting is part of Action 13 of the OECD/G20 Base Erosion and Profit Shifting (BEPS) Action Plan. It also forms part of the EU Commission’s Anti-Tax-Avoidance Package.

Council Directive 2011/16/EU is often referred to as the DAC. The DAC provides for the exchange of taxpayer information between the tax administrations of EU Member States. Council Directive (EU) 2016/881 (DAC4) amended the DAC to transpose OECD BEPS recommendations for CbC Reporting into EU legislation.

CbC Reporting applies to multinational enterprise groups (MNE Groups) with annual consolidated group revenue of €750 million or more in the preceding fiscal year.

CbC Reporting gives tax administrations a global picture of the operations of MNE Groups. Tax authorities can use this information to:

• perform high-level transfer pricing risk assessments
• evaluate other BEPS-related risks
• and
• for economic and statistical analysis.

Irish legislation and guidance on CbC Reporting

The legislation that implements CbC Reporting in Ireland is contained in:

• section 891H of the Taxes Consolidation Act 1997 (as inserted by section 33 of Finance Act 2015 and as amended by section 24 of Finance Act 2016)
• and
• S.I. No. 653/2016 - Taxes (Country-by-Country Reporting) Regulations 2016.

For detailed information on DAC4/CbC Reporting obligations, please see Tax and Duty Manual Part 38-03-21.

Next: Filing a Country-by-Country (CbC) report in Ireland