Response to the public consultation on the transposition of the Country by Country Reporting directive

Last week, the Institute under the auspices of the Consultative Committee of Accountancy Bodies – Ireland (“CCAB-I”) responded to the public consultation on the transposition of Directive (EU) 2021/2101 as regards disclosure of income tax information by certain undertakings and branches.

The directive must be transposed into Irish national law by 22 June 2023 and requires multinational enterprises (“MNEs”) with a base, subsidiary, or branch in the EU, and revenue over €750 million for each of the last two consecutive financial years, to disclose publicly in a specific report the income tax they pay.

The directive provides for two discretionary options to entities required to report under the directive. Option one provides for a deferral where reporting would be seriously prejudicial to the commercial position of the undertaking. Option two provides for an exemption where the information sought is publicly available elsewhere. The public consultation was centred around these discretionary powers and the extent to which the Irish legislator should implement such powers.

The CCAB-I responded affirmatively noting both options should be afforded to taxpayers required to report under the directive.

Read the full response here.