Global

Details

  • Service: Tax, Global Indirect Tax, International Executive Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 12/17/2013

United Kingdom - Country-by-country reporting regulations 

December 17:  Regulations—Capital Requirement (Country-by-Country Reporting) Regulation 2013—and associated guidance have been published, and implement Article 89 of the Capital Requirements Directive IV requiring credit institutions and investment firms to report information on activities, employees, turnover (and ultimately profit, corporate taxes paid and subsidies) on a country-by-country basis.

Tax professionals have observed that the regulations are an improvement on the previous draft. The changes from the draft regulations (released in November 2013) include:


  • The definition of “accepted accounting standards” now includes both IFRS and UK GAAP.
  • The requirements to publish the information in the annual report have been eased, and the institution only must disclose in its annual report how it has (or will) comply with the requirement and include a reference to where (e.g., website) the information may be found.
  • The group reporting requirements have been clarified. Previously if a group had institutions subject to the rules but that were not in the same sub-group, the only option appeared to be to report on a full group consolidated basis. This has been amended so that full group reporting is permissible, but preparing separate reports for each in-scope institution is also possible.

KPMG observation

For large institutions compliance with these new requirements will be a complex exercise. The regulations and guidance do allow groups some flexibility to tailor disclosure to individual facts and circumstances—something that will need very careful consideration as new processes are put in place.


Read a December 2013 report [PDF 673 KB] prepared by the KPMG member firm in the UK: Weekly Tax Briefing (13 December 2013)


Other items discussed in this KPMG report concern:


  • CJEU decision on FII Group Litigation
  • Outcome of ECOFIN meeting on UK patent box regime
  • Stamp duty land tax – charities relief
  • Film tax relief – visual effects
  • Avoidance schemes using total return swaps
  • Indirect tax items (reverse charge on mobile phones, computer chips, and emissions allowances)



©2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now