BEPS reaction – Deloitte reveal their paranoia about accountability

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I was amused by the Deloitte reaction to the OECD's Base Erosion and Profits Shifting report. In it they say - with direct reference to plans for country-by-country reporting implicit in the BEPS proposal:

Companies should prepare for the changes proposed to transfer pricing documentation. There appears to be a wide-ranging agreement amongst countries that a high-level map of profits and taxation would help with risk assessment. Businesses–and countries–are aware of the potential dangers, such as the possible misuse of confidential information, and finding safeguards will no doubt be part of the action plan.

Oh no! Heavens above that information about what a multinational corporation does in a country might be found out and its super-normal profits earned from exploiting secrecy - whether within the market or by undertaking tax abuse - be prejudiced as a result.

Since this appears to be one of the highlights of BEPS for Deloitte I think we can safely say that country-by-country reporting looks to be at the heart of tax debate over the next couple of years or so. And I suspect Deloitte are going to be disappointed by the outcome because this is one issue where the political debate appears to have already been won.