In a letter to the OECD Secretariat responding to the OECD’s public consultation on the GloBE Information Return (GIR), Business at OECD (BIAC) has said it is 'deeply concerned about the complexity and enormous compliance burden associated with the GIR’.
‘The volume of data required for each constituent entity to be collected and reported by MNEs and analyzed by tax authorities is nearly insurmountable,’ BIAC says. ‘There is a real risk that neither MNEs nor tax audit teams will be able to cope with this complexity beyond the first three years of the transitional Safe Harbor. Modern compliance with respect to corporate income tax is based on a balanced, risk assessment-based approach. This balance is in our view not achieved with the current design of the GIR.’
‘For these reasons, we urge the Inclusive Framework to develop further simplifications to the GIR, with a more streamlined approach for cases where there is no top-up tax (TUT) liability,’ BIAC added.
In a letter to the OECD Secretariat responding to the OECD’s public consultation on the GloBE Information Return (GIR), Business at OECD (BIAC) has said it is 'deeply concerned about the complexity and enormous compliance burden associated with the GIR’.
‘The volume of data required for each constituent entity to be collected and reported by MNEs and analyzed by tax authorities is nearly insurmountable,’ BIAC says. ‘There is a real risk that neither MNEs nor tax audit teams will be able to cope with this complexity beyond the first three years of the transitional Safe Harbor. Modern compliance with respect to corporate income tax is based on a balanced, risk assessment-based approach. This balance is in our view not achieved with the current design of the GIR.’
‘For these reasons, we urge the Inclusive Framework to develop further simplifications to the GIR, with a more streamlined approach for cases where there is no top-up tax (TUT) liability,’ BIAC added.
