CbCR Technology – Making smart use of Country-by-Country Reporting

Country-by-Country Reporting (CbCR) has long since become more than just a reporting obligation: with Public CbCR, Pillar Two safe harbours and increasing data analysis by tax authorities, the pressure on data quality, processes and transparency is mounting. With our CbCR technology solutions, we make your CbCR data audit-proof and efficiently usable – and transform risks into management information.

Our holistic CbCR approach: from data collection to risk analysis

We support multinational corporate groups throughout the entire CbCR process:

• Structured data collection and preparation in accordance with OECD and local file requirements
• Standardised preparation of the CbCR, including Tables 1–3
• Technical conversion to the required XML format and electronic submission
• Data-driven risk analyses from the tax authority’s perspective (OECD Risk Indicators)
• Dashboards and KPIs for management, tax and public CbCR communication

WTS CbCRmanager – Central platform for CbCR processes

The WTS CbCRmanager is our web-based IT solution for complying with OECD and local CbCR requirements (Action 13 of the BEPS). It can be used as a standalone solution or as an extension of the WTS TPmanager.

Your benefits with CbCRmanager

• Mapping of the entire CbCR process in a single tool
• Capture, validation and consolidation of CbCR data worldwide
• Support for the three-part documentation structure (Master File, Local File, CbCR)
• Standardised and automated workflows in transfer pricing and CbCR
• Global Dashboard for tracking status and deadlines
• Enhanced transparency and analytical handling of tax data

WTS CbCR-2-XML – Automated creation & submission of the XML file

With WTS CbCR-2-XML, you can meet the technical requirements set by the OECD and the BZSt for the electronic submission of the CbCR – quickly, securely and without the need for in-house development. The online tool covers the entire technical process – from data import and conversion through to submission and status enquiries. The solution is hosted on WTS servers in Germany; no CbCR data is stored permanently.

Overview of functions:

• Technical conversion of CbCR data (Tables 1–3) into the standardised OECD XML schema
• Support for the specific requirements of the BZSt, including ELMA5 integration
• Upload of validated CbCR data via standard files (e.g. CSV) using a web browser
• Automatic conversion to the required XML format
• Direct transmission of the XML file to the BZSt via the integrated ELMA5 interface
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• Real-time display of the validation status at the BZSt in the portal

WTS CbCR Risk Analyser – CbCR risk management just like the tax authorities

With the WTS CbCR Risk Analyser, you can assess your CbCR data using the same criteria as tax authorities – and identify anomalies before they lead to a tax audit or become a matter of public debate. You gain a clear picture of which countries are particularly in the spotlight from a CbCR and Public CbCR perspective – both internally and externally.

Basis & Methodology:

• Alignment with the 19 risk indicators from the OECD’s “Handbook on Effective Tax Risk Assessment”
• Use of 18 risk indicators comprising a total of 40 metrics based on your CbCR data
• Determination of a risk factor per tax jurisdiction (scale 1–5)
• Focus on indicators: Where do CbCR data signal potential risks or a need for explanation?

Technical implementation & visualisation:

• Data processing via an Alteryx workflow
• Visualisation in Power BI or comparable BI software
• Dynamic dashboards in which you can interactively analyse countries, key figures and time series
• Option for bespoke analyses and industry-specific views provided by our team of experts

Get in touch

Whether you want to start by securing the technical transmission, centralising your processes, or using CbCR data for analytical purposes – we will work with you to develop a suitable CbCR technology roadmap.

Contact us for a demo of CbCRmanager, CbCR-2-XML or CbCR Risk Analyser and a no-obligation discussion about your requirements.