22 December 2016 Luxembourg's Parliament adopts draft law on Country-by-Country Reporting The Luxembourg Parliament adopted draft law n°7031 on December 13, on Country-by-Country (CbC) reporting (the Law), implementing Directive 2016/881/EU of May 25, with respect to the mandatory automatic exchange of information in the field of taxation. The Law is in line with the initial draft law as introduced before the Parliament. However, there is one significant change: where the initial text provided for a penalty of up to €250,000 in the case of failure to file or late filing of the CbC report, the final text extends this penalty to the failure to notify the Luxembourg tax authorities whether a Luxembourg group entity is the group's ultimate parent entity or a surrogate parent entity. The penalty may also apply in case of late notification to the tax authorities. A Tax Alert prepared by EY's Global Tax Desk Network, and attached below, provides additional details. Document ID: 2016-2196 |
