On 8 March 2016, the EU's Economic and Financial Affairs Council (ECOFIN) announced that it has agreed on the draft directive that would require the exchange of Country-by-Country (CbC) reports between EU Member States. The draft directive was issued as part of a package of anti-avoidance measures based on the outcome of the OECD BEPS Project in January (previous coverage) and would amend the EU Directive on Administrative Cooperation in the Field of Taxation (Directive 2011/16/EU) for the purpose of the exchange.
The CbC exchange directive is pending consultation of the EU and UK parliaments. After national parliamentary reservations have been lifted and the text is finalized in all languages, it will be adopted by the Council. Once adopted, all EU Member States will be required to transpose the rules into domestic law, and the first exchange of CbC reports will take place in the beginning of 2018 in respect of the 2016 fiscal year.
Final adoption by the European Council is expected in May.
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