IEI300023 - CBC: Exceptions to the filing obligation

The UK rules use many terms and definitions that are taken from the OECD guidance and that guidance should be checked when completing a CbC report.

A UK Entity that is required to file can apply an exception where, by the filing deadline, the information it would be required to file has already been included either:

• in a CbC report filed with a jurisdiction that will exchange with HM Revenue and Customs – Exception A. It is not necessary for the CbC report to have been received by HMRC from the other jurisdiction for the exception to apply but it is necessary for the report to have been filed with the tax authority of the other jurisdiction before the filing deadline, or
• in a CbC report which has already been received by HMRC – Exception B.

A UK entity which is applying either of the exceptions outlined above must tell HMRC, by the filing deadline:

• which entity in the MNE group has filed the CbC report,
• the date the report was filed

Additionally for Exception B to apply the UK entity must also tell HMRC:

• which jurisdiction the entity that filed the report is resident in and
• the jurisdiction in which the report was filed.

Any UK entity which intends to rely on filing by another entity in its group will want to consider engaging early with the entity that will file the CbC report to ensure that it is not subject to the duty to file.

HMRC would prefer the UK entities that are applying either exception to send details as set out above to the dedicated mailbox which has been set up for this purpose – notification.cbcrfiling@hmrc.gsi.gov.uk.

Where details are being sent by mail it should be sent to the address shown below and it should be marked “Country-by-Country Reporting Notification”.

HMRC CbCR Notifications

Room 806

8th Floor Dorset House

Stamford Street

London

SE1 9PY