Under the law of the requesting state, transactions between companies of the same group must be considered to have an armament duration. The tax authorities were concerned that the remuneration paid by the member of the Dutch group to the member of the group in the requesting state was artificially low and therefore did not meet this requirement. In order to determine whether this was the case, the tax authorities wanted information on the price structure and profit distribution among the other companies in the group. The group member in the requesting state explained to the tax authorities that he was not in a position to provide the information requested by the IRS – hence the request. 14. Bermuda has legal mechanisms in place to enforce minimum standards: there are notification mechanisms, 12 There are also penalties for THE CBC`s obligation and notification: (i) the penalty for non-compliance with THE CBC`s submission requirements,13 (ii) a daily delay penalty14 and (iii) penalties for inaccurate information15. keep records of the financial situation and information about the company`s activity and provide all relevant information for its tax position. Custodial sentences or sentences may be imposed if obligations are not met.16 ← 4. Bermuda has indicated that this is a voluntary non-reciprocal jurisdiction with respect to the CBC`s reporting obligations, as they currently do not have national tax requirements for this information and are devoting significant resources to meeting the cbc reporting standard in 2017. Summary of mandate: provided that the submission of a cbC report by a higher parent organization begins for a given exercise; All the information and only the necessary information Happens within a set period of time and rules and guidelines for other aspects of notification requirements are consistent with and circumvent the minimum standard (paragraph 8, paragraph b). 15.

←. See section 19 of the regulations. A person is liable to a civil penalty of up to 5,000 BMD if the person provides inaccurate information when submitting a cbC report and meets condition A or B: (A) the person is aware of the inaccuracy at the time of his catch-up, but does not inform the Minister or (B) the person discovers the inaccuracy after the information has been passed on to the Minister and does not take appropriate steps to inform the Minister. BeesMont has prepared a newsletter containing important information for Bermuda Reporting Financial Institutions, including major changes, reminders and next steps. Read more OECD (2018), Guidance on the Implementation of Country-by-Country Reporting, www.oecd.org/ctp/exchange-of-tax-information/guidance-on-country-by-country-reporting-beps-action-13.htm.

Share →