CbC-reporting in tax administration





automatic information exchange, CbC (CbCR) standard, international group of companies, authorized participant, report in terms of IGC countries, global documentation on TP.


Background. Countering the erosion of the tax base through the use of transfer pricing (TP) is an important element of tax policy. Ukraine is implementing three-level TP reporting and the procedure of automatic exchange of tax information.
The analysis of recent research and publications has showedthat research on the use of data obtained in the exchange of tax information procedure under the CbC standard is relevant and controversial.
The aim of the articleis to investigate the conditions for the introduction of automatic information exchange in Ukraine and provide recommendations for the practical use of the obtained data for tax control purposes.
Results. An analysis of the structure of three-level TP reporting and the conditions of its first submission in Ukraine was performed. The procedure of automatic exchange of tax information according to the CbCR standard is considered. Based on the results of this study, a set of proposals for the use of CbC reporting data for tax administration purposes has been developed. The implementation of these proposals will help strengthen tax control and administration.
ConclusionThe information received under CbCR-standard is intended for comprehensive analysis and risk identification by tax administrations and cannot be an alternative to tax audits or investigations. The obtained results can be used to build the business processes on CbC information application by the tax authorities.
Further research in this direction should focus on the development of recommendations for the business process on the automatic exchange of information according to the CbCR standard establishment and the further use of the data obtained under this exchange by the tax administration.

Author Biographies

Mariana MUZYCHUK, Kyiv National University of Trade and Economics

postgraduate student at the Department of Accounting
and Taxation

Olena FOMINA, Kyiv National University of Trade and Economics

Doctor of Sciences (Economics), Professor, Head of the Departmentof Accounting and Taxation


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How to Cite

MUZYCHUK М., & FOMINA О. (2021). CbC-reporting in tax administration. oreign rade: onomics, inance, aw, 116(3), 64–76. https://doi.org/10.31617/zt.knute.2021(116)06