As previously reported, the Bahamas House of Assembly approved the Multinational Entities Financial Report Bill 2018 in May 2018 for the introduction CbC reporting requirements. The text of the legislation as enacted in July 2018 has recently become available. Key points are summarized as follows:
Administrative penalties up to USD 5,000 and fines up to USD 10,000 (upon summary conviction) may be imposed for failing to comply with the CbC reporting obligations.
Note, the wording of the provisions for surrogate parent filing is similar to the standard secondary local filing provisions for constituent entities. As such, secondary local filing requirements are uncertain, although according to the OECD, local filing in the Bahamas is not required.
Further, with respect to the deadline for CbC reports, the legislation includes a provision that for reporting fiscal years that began on or before 31 May 2018, the corresponding CbC report should be filed no later than 31 March 2019. This provision seems to be in error given that a standard 12-month fiscal year beginning on 31 May 2018 would finish after 31 March 2019.
Further details will be published once available.
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