12 Working with Country-by-Country Reporting (CbCR)

Country-by-Country Reporting enables large multinational corporations to provide an annual return detailing key elements of the financial statements by jurisdiction. The report provides local tax authorities visibility to revenue, income, tax paid and accrued, employment, capital, retained earnings, tangible assets and activities.

Tax Reporting enables you to collect and assemble the required data for the CbCR reports.

The CbCR report consists of three sections:

  • Data Entry - Table 1, 2, Constituent Entity Information and Further Information
  • Summary tables for the entire corporate entity
  • Filing report detailing the specific contact and corporate information required to file the report to the local tax authority

When you select the CbCR option to create your new CbCR application, a separate CbCR cube is created, although both the Consol and Rates cubes are still available. The CbCR cube contains all forms and dimensions required to perform country by country reporting. Data can be pulled between the Consol and CbCR cubes, but the CbCR information is not in the Consol cube. All dimensions are mirrored in the Consol cube, with the following differences:

  • Accounts dimension in the CbCR cube only has CbCR accounts under TRCS_CountryByCountryReporting. There are no book accounts.
  • Movements dimension includes the information required for Filing the reports.
  • Data Source dimension includes a more limited selection for CbCR.

Note:

The Consol cube is used to report provisioning, and the CbCR cube is used to collect and assemble data for CbCR reports, pulling its data from the Consol cube.

Because the data resides in two different cubes, any changes to the Consol cube must be transferred to the CbCR cube. You must automate the movement of data between the Consol cube and the CbCR cube by setting up CbCR Automation. See Working with CbCR Automation.

For information on creating the CbCR application, see Creating a New Application in Administering Tax Reporting.

The Country-by-Country Reporting accounts may be computed and booked during different periods depending on the entity. For example, during a calendar year, all available data can be calculated for the Country-by-Country-Reporting accounts, while reporting of CbCR is at the discretion of the company.

When the report is ready, you generate the following files:

  • Official XML file that will be submitted to the tax authority
  • Validation .TXT file that lists any errors.

You must correct all errors before the report can be submitted.

Watch the following video for information on Country by Country Reporting: Overview: Country by Country Reporting with Oracle EPM Cloud.