TPG2022 Chapter V paragraph 5.59

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Jurisdictions should use appropriately the information in the Country- by-Country Report template in accordance with paragraph 5.25. In particular, jurisdictions will commit to use the Country-by-Country Report for assessing high-level transfer pricing risk. Jurisdictions may also use the Country-by- Country Report for assessing other BEPS-related risks. Jurisdictions should not propose adjustments to the income of any taxpayer on the basis of an income allocation formula based on the data from the Country-by-Country Report. They will further commit that if such adjustments based on Country- by-Country Report data are made by the local tax administration of the jurisdiction, the jurisdiction’s competent authority will promptly concede the adjustment in any relevant competent authority proceeding. This does not imply, however, that jurisdictions would be prevented from using the Country-by-Country Report data as a basis for making further enquiries into the MNE group’s transfer pricing arrangements or into other tax matters in the course of a tax audit.

(Access to a mutual agreement procedure (MAP) will be available when the government-to-government exchange of the Country-by-Country Reports is based on bilateral treaties. In cases where the international agreements on which the government-to-government exchanges of the Country-by-Country Reports are based do not contain provisions providing access to MAP, jurisdictions commit to introducing in the competent authority agreement to be developed a mechanism for competent authority procedures to discuss with the aim of resolving cases of undesirable economic outcomes, including if such cases arise for individual businesses.)

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