New rules to improve global tax transparency

04-Jul-2017 @ 12:00

Sajjad Karim Sajjad Karim

Sajjad Karim Sajjad Karim

Sajjad Karim Sajjad Karim

New rules to improve global tax transparency

Conservative MEPs have welcomed new legislation that aims to tackle corporate tax avoidance by large multinationals in the EU.

The new rules, adopted by the European Parliament in Strasbourg today, will apply to multinationals with an annual turnover of more than €750 million and require them to publicly report where they pay their tax, on a country-by-country basis across the EU, as well as disclosing profit and loss, fixed assets and numbers of employees.

New EU legislation protects commercially sensitive information while ensuring transparency

The parliament also introduced a 'safeguard clause' into the proposals to allow companies to remove from the public part of their reports commercially sensitive information if disclosure is likely to have a damaging effect on the company. The European Commission and national authorities must approve the omission on an annual basis.

Speaking after the vote, Conservative Legal Affairs spokesman Sajjad Karim said: “People have rightly been demanding more transparency from multinationals on what countries they pay tax in. These new proposals should improve public trust in global companies by strengthening transparency requirements and making information public.

“At the same time, we’ve ensured that we are not unfairly disadvantaging EU based firms by forcing them to disclose commercially sensitive or harmful information - they’ll be able to apply to omit certain data from their public reports.”

The Parliament will now enter negotiations with the European Council in order to reach an agreement on the legislation.

 

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