Demands on multinationals to be financially transparent continue to grow
The global drive for corporate transparency has cost multinational companies and financial institutions millions of rand — and it is not over. New requirements will come into play this year and next, with country-by-country reporting and the onerous task of extracting data for the future automatic exchange of financial information between governments. Large, multinational companies are scrambling to get to grips with the new country-by-country reporting requirement. This essentially means multinational companies have to report details including revenue, profit, income tax paid and taxes accrued separately for each jurisdiction where they operate. It is part of the initiative by the Organisation for Economic Co-operation and Development (OECD) to combat base erosion through the shifting of taxable profits to low-tax jurisdictions. JP Borman, PwC’s transfer pricing leader in Johannesburg, says revenue authorities are of the view that they do not have sufficient visibility into the aff...
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