Global

Details

  • Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 8/29/2014

United Kingdom - Proposed country-by-country reporting for extractive companies 

August 29:  The UK Department for Business Innovation and Skills (BIS) on 21 August 2014 released updated draft legislation that would implement Chapter 10 of the EU Accounting Directive.

The UK legislation would introduce country-by-country reporting for UK extractive companies or groups of tax payments to governments, including payments of:


  • Corporate taxes
  • Royalties
  • Licence fees
  • Production entitlements
  • Bonuses
  • Dividends
  • Infrastructure payments

An initial draft was published in March 2014, that was followed by a consultation. The industry working group is drafting guidance that would be used to implement the legislation, with the guidance expected to be published in due course (and expected to be endorsed by the UK).

KPMG observation

The requirements could pose a significant compliance burden on extractive companies and groups because the rules would require country-by-country reporting of all cash payments by project and by the receiving government.


Read an August 2014 report [PDF 775 KB] prepared by the KPMG member firm in the UK: Weekly Tax Matters (29 August 2014)


Other discussions in this KPMG report concern:


  • Corporate debt and derivative contracts: Draft regulations
  • British Film Institute – Upper Tribunal decision
  • Government response to OTS report on employee benefits and expenses
  • HMRC issue letters updating employers on disputed PAYE charges
  • HMRC publish a guide to adjusted net income
  • HMRC issue reminder to claim Employment Allowance
  • HMRC step up the pressure on offshore tax evaders
  • Liechtenstein Disclosure Facility – access to favourable terms narrows



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