Instead, under unitary taxation, the parent company
with all its subsidiaries is treated as one entity or unit. Internal
transactions are no longer relevant as the company
is assessed on the basis of its consolidated accounts
covering all its operations. The company is required to
have a combined report, depicting its entire activity for
the whole entity and in the different countries of operation.
The report is similar to country-by-country reporting
but goes further in the breakdown of the activities.
The profit of the entire corporation is then distributed to
the countries of operation according to an apportionment
formula that relies on features that should give a
picture of real economic activity and canno