CbyC Handbook

The OECD has published a handbook to help tax authorities in the effective use of CbC Reports which they will shortly be receiving, by incorporating them into a tax authority's risk assessment process.   The handbook contains:

·         a description of the role of tax risk assessment in tax administration, the core characteristics of an effective risk assessment system, and examples of the approaches used in different countries;

·         an outline of the information contained in CbC Reports, and the potential advantages CbC Reports have over data from other sources;

·         consideration of the ways in which CbC Reports can be incorporated into a tax authority's risk assessment framework and a description of some of the main potential tax risk indicators that may be identified using CbC Reports;

·         a description of some of the challenges that may be faced by a tax authority in using CbC Reports for tax risk assessment and how some of these may be dealt with;

·         an outline of some of the other sources of data that may be used by a tax authority alongside CbC Reports; and

·         an overview of how the results of a tax risk assessment using CbC Reports may be used and the next steps that should be taken.

There’s also a description of some of the main potential tax risk indicators and some innocent explanations.  The handbook is available in English, French and Spanish at http://www.oecd.org/tax/beps/country-by-country-reporting-handbook-on-effective-tax-risk-assessment.htm