On January 31 2016 Chile signed the Organisation for Economic Cooperation and Development's (OECD) Competent Authority Agreement on the Automatic Exchange of Country-by-Country Reports. This agreement was negotiated within the framework of the OECD and G20 base erosion and profit-shifting project and requires large companies operating in multiple jurisdictions to "report to their country of residence specified information regarding each jurisdiction in which the group operates", including "revenues, profits, income tax paid, stated capital, accumulated earnings, number of employees, and tangible assets".
The agreement will allow tax authorities in signatory countries to access information on the global operations of multinational companies regarding the territorial allocation of income, economic activities and taxes paid in different jurisdictions. The first information exchanges are expected to begin in 2017.
Chile's decision to sign the agreement complements a series of structural measures that the government implemented following the 2014 tax reform, to ensure that the tax base is not artificially manipulated by taxpayers.
For further information on this topic please contact Omar Morales at Montt y Cia SA by telephone (+56 22 233 8266) or email (firstname.lastname@example.org). The Montt y Cia SA website can be accessed at www.monttcia.cl.
This article was first published by the International Law Office, a premium online legal update service for major companies and law firms worldwide. Register for a free subscription.