Trust Bloomberg Tax's Premier International Tax offering for the news and guidance to navigate the complex tax treaty networks and business regulations.
By Ben Stupples
U.K. government officials are “aware” some multinational companies are struggling to use a recently launched e-portal as they submit their first global tax reports.
“The service, while live and operating well, is still in the testing phase,” a spokesman for the U.K.’s tax authority, Her Majesty’s Revenue and Customs, told Bloomberg Tax in a Dec. 18 email. “There may therefore be short, infrequent downtimes while it receives maintenance and we are aware of a very small number of businesses who have not been able to register for the service.”
It’s the first time HMRC has publicly acknowledged glitches within the service, which was supposed to be available over the summer but was delayed until last month. HMRC stressed in the statement that its online service has been available to companies for the “vast majority” of the time since it launched in mid-November. Any company that has trouble registering for the service should contact HMRC directly, the statement said.
Known as country-by-country reporting, the filings are the most widely adopted policy from the OECD’s project to curb tax avoidance among multinationals. The measure provides a clear picture of companies’ finances, such as profits and taxes paid, for each country in which they operate.
HMRC’s system has often crashed since its launch when customers have used it, Malcolm Joy, a London-based international tax partner at the global accounting firm BDO UK LLP, told Bloomberg Tax Dec. 13. The system has been “problematic,” he said.
Country-by-country reporting only applies to companies with annual group revenue of at least 750 million euros ($884.3 million).
Under the Organization for Economic Cooperation and Development’s guidance, companies should file their reports within 12 months of the relevant fiscal year. In line with the U.K.’s Finance Act 2015, any company with a calendar year-end for its accounts must file by Dec. 31, 2017.
More than half of the companies listed on the U.K.’s FTSE 100 stock market index have calendar year-ends, according to data compiled by Bloomberg Tax. In total, around 300 U.K. multinationals will have to file country-by-country reports to HMRC, according to an official policy paper.
To contact the reporter on this story: Ben Stupples in London at email@example.com
To contact the editor responsible for this story: Penny Sukhraj at firstname.lastname@example.org
Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)