Commission Proposes Public Tax Transparency Rules for Multinationals
Fighting tax avoidance and aggressive tax planning is a political priority for the European Commission.
Since the beginning of its mandate, the Juncker Commission has pursued an ambitious agenda to ensure fair taxation, meaning that companies should pay their fair amount of taxes in the country where they generate their profits.
In a new initiative, the Commission has proposed public tax transparency rules for multinationals on a country-by-country basis, requiring them to publish annually a report disclosing the profit and the tax accrued and paid in each Member State.
The proposal builds on the Commission’s work to tackle corporate tax avoidance in Europe, estimated to cost EU countries €50–70 billion a year in lost tax revenues. Once adopted by the Council of the EU and the European Parliament, the new rules will apply to the approximately 6,500 largest companies operating in the EU with global revenues exceeding €750 million a year without damaging their competitiveness and without affecting small and medium sized companies.
The Commission has published a factsheet with 28 questions and answers relating to the proposal. In this video (also shown below), Jonathan Hill, European Commissioner for Financial Stability, Financial Services and Capital Markets Union, goes through the benefits of the public country-by-country reporting proposal.