The Senior Manager, Tax Services and Transfer Pricing, Ernst & Young (EY), Temitope Oni, has described the country- by- country reporting (CbCR) introduced in the Nigerian tax system as a game changer for the Federal Inland Revenue Service (FIRS).

Oni said this during a knowledge sharing session organised by EY in Lagos on Wednesday.


The CbCR regulations took effect from January 1, 2018, and forms part of the enhanced tax disclosure requirements set out by Action 13 of the Base Erosion and Profit Shifting (BEPS) project. The regulations aim at providing tax authorities with improved information to enable them better assess international tax avoidance risks.

Under the CbCR regulations, where the Ultimate Parent Entity (UPE) or a Constituent Entity (CE) of a Multinational Enterprise Group (MNE Group) is tax resident in Nigeria, such Nigerian resident entity will be required to file a Country-by-Country Report with FIRS for an accounting year where the Group has a total consolidated revenue of N160 billion or more in the immediate preceding accounting year.

Oni, while commenting on the reason behind the knowledge sharing session said: “We saw the need to have our clients come together and have a knowledge sharing session to share the best practise as to how this can be done. CbCR reporting is actually a development that came from BEPS action plan.

“BEPS is tax avoidance strategy that exploits gaps and mismatches in tax rules to artificially shift profits to low or no tax locations where there is little economic activity resulting in little or no overall corporate tax being paid.”

Speaking further, Oni said: “We have discovered that multinationals over the years have been shifting profit from high tax jurisdiction, to low tax jurisdiction and the reason is because they want to reduce their overall corporate tax rate and they have been relying on the tax laws to do that. There are loopholes in the tax laws, so what they have been doing was to exploit the gaps in the international tax laws to shift profit here and there.

“It’s a good thing and we are celebrating it. Taxpayers are also happy to get to know what is required of them because if you look at the penalty provisions in the regulations, they are quite huge.

“What they have done is to come together and address these loopholes once and for all, so that multinational enterprises would not shift profit from high tax jurisdiction to low tax jurisdiction anymore.”

http://www.akelicious.net/2018/07/country-by-country-reporting-for.html

Good thread

I work in transfer pricing in the US and it is heartening to see Nigeria adopt country by country reporting requirements. I can imagine how this changes the dynamics for Nigeria in terms of maintaining a tax base. Kudos to FIRS

post=69739018:
Good thread

Ive been wanting to ask you, what is "colesaw"

BabaRamota1980:


Ive been wanting to ask you, what is "colesaw"

Coleslaw, serves the same function as salad, just that salad has more ingredients and more richer than it.
With this explanation of ours, you should be able to tell which one is salad and which one is coleslaw in the 2 images below.
That's it BabaRamota.
Great Ramota for us.
Thanks

Another bad news for tax invader...

aribs:
I work in transfer pricing in the US and it is heartening to see Nigeria adopt country by country reporting requirements. I can imagine how this changes the dynamics for Nigeria in terms of maintaining a tax base. Kudos to FIRS

What's country by country reporting?

pocohantas:


What's country by country reporting?

CbCR is a compliance obligation placed on multinational enterprises (“MNE”) whereby they annually report the key elements of their financial statements. The figures are broken down by the jurisdictions in which they do business. CbC reports provide tax authorities with information to help them assess transfer pricing risk. In turn, they should be able to allocate their tax audit resources more efficiently. It is hoped that the above will help the OECD move towards a tax landscape where business activity is geographically aligned with profits generated from such activities.CbC reports are filed primarily with the tax authorities in the jurisdiction where the MNE ‘parent’ entity is located. However, in some instances the parent is located in a jurisdiction where CbCR has not yet been implemented. In such an instance, the MNE must appoint a ‘surrogate parent’, located in a jurisdiction where CbCR has been implemented to file the report on behalf of the MNE. There is a financial threshold applicable depending on the country

This days na propaganda upon propaganda..chai apc...

Make una take am easy..

Whichever way the dullardeen will be escorted home by his dullardeen s

BabaRamota1980:


Ive been wanting to ask you, what is "colesaw"

Coleslaw is shredded cabbage and carrot tossed in dressing. The dressing is usually mayonnaise or dijon mustard.

aribs:


CbCR is a compliance obligation placed on multinational enterprises (“MNE”) whereby they annually report the key elements of their financial statements. The figures are broken down by the jurisdictions in which they do business. CbC reports provide tax authorities with information to help them assess transfer pricing risk. In turn, they should be able to allocate their tax audit resources more efficiently. It is hoped that the above will help the OECD move towards a tax landscape where business activity is geographically aligned with profits generated from such activities.CbC reports are filed primarily with the tax authorities in the jurisdiction where the MNE ‘parent’ entity is located. However, in some instances the parent is located in a jurisdiction where CbCR has not yet been implemented. In such an instance, the MNE must appoint a ‘surrogate parent’, located in a jurisdiction where CbCR has been implemented to file the report on behalf of the MNE. There is a financial threshold applicable depending on the country

Thanks much.
I get it now...