The european Parliament has adopted its position on the public reporting on a country-by-country (CBCR) groups whose turnover exceeds eur 750 million proposed by the european Commission in April 2016. The publication of the data provided to the tax authorities regarding the income taxes paid, number of employees, turnover and profits in the countries where these companies operate is among the instruments essential to the fight against evasion and optimization tax.
Download the free guide
Boost your gains
Declaration of Pascal DURAND, Vice-President of the group Greens-EFA, member of the Committee on legal affairs :
“The text voted by the Parliament is a strong signal sent to the States but also the citizens. It demonstrates that meps have taken the measure of the threat to our societies posed by tax evasion and the importance of transparency to address this. With this compromise, about 6000 groups will be affected by these obligations that we have been able to expand to all countries of the world and potentially more in the four years since we’ve introduced a review clause to lower the threshold of the annual turnover.
Also, the obligation for the undertakings concerned to disclose the possible regimes for the taxation of intellectual property which they would benefit, is a major step forward when we know the role of these “boxes to patents” in order to evade the tax.
Unfortunately, the regime of exception imposed by the right-hand drastically reduces the usefulness of the text, because companies will be able to claim exemptions so as not to publish information they deem to be “commercially sensitive”. However, unless you wish to conceal a mounting tax doubtful, nothing can explain that a company refuses to publish information that is as general as its turnover, its profits, taxes paid or number of employees.
Declaration of Eva JOLY, Vice-President of the Commission of inquiry Panama Papers :
“The Luxleaks to PanamaPapers, scandals repeatedly have shown that multinationals feed on the secret to develop tax structures enabling them to not contribute their fair share to the functioning of the community. It is also what they were able to highlight our work within the Commission of inquiry PANA in the european Parliament.
And there is almost nothing more cost-effective and simple to implement than the fiscal transparency ! Do not change these practices as anti-democratic is unjustifiable. Just as the willingness of the right to add a safeguard clause which allows the multinationals to evade the transparency in the name of so-called trade secrets. It is unfortunate that this new alliance in the Parliament has weakened our ambitions in terms of transparency. ”
Pascal Durand
Mep Europe Ecology
Download the free guide
Boost your gains
