How well prepared are you for the arrival of the ATO’s Base Erosion and Profit Shifting (BEPS) measures?
Thomson Reuter’s publicly available 2016 Global BEPS Readiness Survey Report suggests tax teams should use these six readiness questions:
1. Entity mapping: Can we thoroughly map out all legal entities included in our company (including permanent establishments [PEs] and branches), as well as their tax residence?
2. Personnel: How many full-time employees (FTEs) work in each jurisdiction, and what is the management structure for each legal entity in our group?
3. Financial data mapping: Can we quickly gather and map entity-level financial data for each country we operate in? And how do we report the financials?
4. Master file: Can we adequately describe our group’s global business operations and transfer pricing policies in a master file available to all relevant country tax administrations?
5. Local file: Can we capture narrative and graphical information for each element of the local file contents, and can we easily and quickly upload content and attach relevant documents?
6. Resources for transfer pricing analysis: Do we have the resources or data needed to support the transfer pricing analysis for each type of related-party transaction?
The 2016 Global BEPS Readiness Survey Report contains more detail on how companies are preparing for the new regime.
Click here to download the report.