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The Global Economic Governance (GEG) Africa programme was created to strengthen the influence of pro-poor African coalitions at global economic governance for a through policy research and stakeholder engagement.
Friday, 26 May 2017 16:59

Fighting BEPS in Africa: A Review of Country-By-Country Reporting

Written by  Peter Draper and Heinrich Krogman

    GEGAfrica Policy Briefing, May 2017

    pdf Download - English (678 KB)

    GEGAfrica Theme 2: Tax and Transparency

    Multinational enterprises (MNEs) can shift profits away from jurisdictions with comparatively high tax rates to jurisdictions with lower to no tax rates, and so avoid paying their fair share of taxes without breaking any single jurisdiction’s laws. This is in part possible owing to the restricted exchange of information between national tax authorities, which limits these authorities’ capacity to conduct accurate MNE audits.

    By creating standard reporting templates and model legislation to collect MNEs’ relevant business information, Action 13 of the Organisation for Economic Co-operation and Development (OECD)/G20 Base Erosion and Profit Shifting Action Plan – Transfer Pricing Documentation and Country-By-Country Reporting – is seen as part of the solution to addressing MNE tax evasion. While representing a substantial step forward, the proposed set of recommendations has a limited scope and is technically onerous to implement in poor developing countries, where revenue authorities are severely resource-constrained. These issues are reviewed in relation to African resource mobilisation needs, and with an eye to the 2020 review of country-by-country reporting (CbCR) implementation.

    Authors: Peter Draper and Heinrich Krogman