On 12 May 2016, the European Parliament issued a press release stating that the European Commission's proposal for automatic exchange of Country-by-Country (CbC) reports was welcomed by Parliament, but that further safeguards are needed. Parliament's safeguard recommendations, which were approved by 567 votes to 30 with 53 abstentions, include:
The proposed automatic exchange of CbC reports in the EU will be implemented through amendments to the administrative cooperation Directive (Directive 2011/16/EU).
Pending final adoption by the Council, all EU Member States will be required to adopt CbC reporting requirements by the end of 2016 that will apply for fiscal years beginning on or after 1 January 2016 for MNE groups with consolidated annual revenue of EUR 750 million in the previous year. Overall, the requirements are to be in line with Action 13 of the OECD BEPS project, although the exchange of CbC reports will be made under the directive, without the need for any additional tax information exchange agreement or competent authority agreement between the exchanging EU Member States.
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