Bloomberg BNA's Transfer Pricing Report quotes Caplin & Drysdale's Peter A. Barnes during his May 9th panel discussion on the likelihood that the Organization for Economic Cooperation and Development (OECD) will delete any more columns from its proposed country-by-country reporting template. For the full article, please visit Bloomberg BNA's website (subscription required).
Excerpt taken from the article.
Speaking to the elimination of the transactional reporting of related-party royalties, interest and service fees from the template, Peter Barnes, a senior fellow at Duke University, said some countries, including China and Korea, already require companies to provide that kind of detail in appendices to their tax returns and it creates a huge burden for taxpayers.
Barnes, also with Caplin & Drysdale in Washington, D.C., urged Michael McDonald, a financial economist with the U.S. Department of Treasury, not only to keep the transactional reporting of related party royalties, interest and service fees out of the template, but to try to persuade countries such as China and Korea to back off from requiring such information.
"I do worry some jurisdictions already have it, and others [will] look at what Korea and China require in their appendices and say, ‘I like that too.' "