EU: Brussels pressures multinationals to declare taxes and profits

Multinational companies will be forced to disclose profits earned and taxes paid in Europe and the world’s shadiest fiscal havens, under proposals announced on Tuesday by EU regulators.

The European commission wants all large companies to publish a country-by-country breakdown of profits, taxes, employees and turnover in all 28 member states of the EU, as well as some of the most problematic tax havens.

American and Chinese companies with a subsidiary in Europe would also be subject to the transparency drive, as the rules would hit all global corporations with a large presence in Europe.

If agreed, the new disclosure requirements would shine a spotlight on some of the world’s most powerful companies, including Apple, Google and Starbucks, which have been caught up in a public furore over their tax bills.

Lord Hill, the European commissioner for financial services, said the new rules would give the public “a clear idea of whether a large multinational is paying tax where they make their profits”.

The proposals would be good for competition, he said, by levelling the playing field between large corporations and smaller firms. “By using complicated tax arrangements, some multinationals can pay nearly a third less tax than companies that only operate in one country.”

Full content: International Business Times

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