Anguilla, as a British Overseas Territory, has committed to international tax transparency initiatives, including the OECD’s Base Erosion and Profit Shifting (BEPS) framework. Although Anguilla is a low-tax jurisdiction, it has implemented Country-by-Country Reporting (CbCR) obligations to align with global tax compliance standards. The Anguilla Inland Revenue Department (IRD) oversees the CbCR framework, ensuring compliance with BEPS Action 13.

This guide provides an overview for CFOs and tax professionals of multinational enterprises (MNEs) with operations in Anguilla, covering CbCR applicability, reporting requirements, filing procedures, penalties, and resources.

Applicability of CbCR in Anguilla

Criteria for Reporting:
CbCR obligations in Anguilla apply to MNE groups that:

• Have consolidated group revenues exceeding XCD 2.2 billion (Eastern Caribbean dollars, equivalent to €750 million) in the preceding fiscal year.
• Include entities or permanent establishments located in Anguilla.

Local Filing Requirements:
A constituent entity in Anguilla may be required to file a CbC report if:

• It is the Ultimate Parent Entity (UPE) of the group, or
• It is designated as the Surrogate Parent Entity (SPE), or
• The UPE’s jurisdiction does not require CbCR or does not have an effective information exchange agreement with Anguilla.

Relevant Legislation:
Anguilla’s CbCR framework is governed under the International Tax Compliance (Country-by-Country Reporting) Regulations.

Reporting Requirements

Content of the CbC Report:
The CbC report must include key financial and tax data for all jurisdictions where the MNE operates, such as:

• Total revenues (related and unrelated party transactions),
• Profit or loss before tax,
• Income tax paid and accrued,
• Stated capital and retained earnings,
• Number of employees,
• Tangible assets other than cash.

Notification Requirement:

• All entities within the MNE group operating in Anguilla must notify the IRD of the reporting entity’s identity and its tax jurisdiction.

Submission Platform:

• Reports must be submitted electronically via the Anguilla Tax Information Exchange Portal, using the OECD’s XML schema.

Resource:
Filing details and resources are available on the Anguilla IRD website: Government of Anguilla – Tax Department.

Filing Deadlines

• CbC Reports: Must be filed within 12 months after the end of the MNE’s fiscal year.
  • Example: For a fiscal year ending 31 December 2023, the report must be filed by 31 December 2024.
• Notifications regarding the reporting entity are due no later than the last day of the fiscal reporting period.

Penalties for Non-Compliance

Penalties and Consequences:
Failure to comply with CbCR regulations in Anguilla may result in:

• Financial penalties for non-compliance, including late filing or incorrect submissions.
• Additional scrutiny and audits by the Inland Revenue Department.

Mitigation:
Penalties may be reduced or waived if the taxpayer can demonstrate reasonable cause for non-compliance.

Confidentiality and Data Exchange

Data Protection:

• Anguilla ensures confidentiality of the CbC report, which is used solely for tax risk assessment.
• Information is exchanged only with jurisdictions that have operational tax treaties and agreements with Anguilla.