Automation of preparation and tax administration reporting processes across countries: conceptual approaches

Abstract

Introduction. Preparation of Country-by-Country Reporting (CbCR) in accordance with the requirements of BEPS13, which is submitted by the parent company of an international group of companies to the jurisdiction by location, should be automatic and based on accounting and financial data. Companies need to prepare a consistent three-level reporting package that discloses information about the global distribution of income, economic activity of companies at the global level. In this regard, there is a need for IT tools to support the implementation of the initiative to comply with contractual obligations to exchange information. Problem Statement. The lack of a conceptual solution to automate the process of preparing the CbCR report, which will allow to prepare the report considering the characteristics of groups of companies and ensure the confidentiality of its use and tax administration, makes it impossible to obtain information quickly. Purpose. Highlighting the prospects for the introduction of the standard for automatic exchange of tax information in Ukraine and setting tasks for the development of a universal solution for automating the processes of reporting and tax administration in order to combat income tax evasion. Methods. General scientific and special methods are used: analysis, synthesis, grouping, description, comparison, system approach, modeling and generalization. Results.The basis for the preparation and analysis of the CbCR report for further automatic exchange, in accordance with the BEPS plan (step 13), is the automation of reporting, which is based on the construction of a unified accounting methodology, optimization of CbCR preparation methods, integration with the accounting systems of various members of the МGC and updating XML schemas with considering the requirements of different tax jurisdictions. It is the development of a comprehensive solution that includes analytical, methodological tools and has a reliable degree of protection to preserve the confidentiality of information, which will help to get an overall picture of the current tax situation of the MGC and the profit erosion risks. Conclusions. In order to achieve the set goal and objectives, conceptual approaches are presented for the development of a universal solution for automating the processes of reporting and tax administration with the aim of countering BEPS in the areas of implementation of OECD norms on the confidentiality of information that is the subject of international exchange.