The European Commission will today outline legislation that would force large multinationals to disclose profits and taxes in each of the EU’s 28 states as well as in fiscal havens. “After the Panama Papers, there must not be a single hesitation from anybody, that we need country-by-country reporting,” he said. All major companies with a turnover larger than €750m operating in Europe will also have to publish how much they tax they pay outside of the EU. Under current EU rules, multinational firms are required to report their taxable income on an annual basis but only if it is over 10% of their total turnover. In order to become binding, the proposals have to be backed by a qualified majority of finance ministers and the European Parliament. Officials have stated that an official list of tax havens will be available within six months.
The European Commission will today outline legislation that would force large multinationals to disclose profits and taxes in each of the EU’s 28 states as well as in fiscal havens. All major companies with a turnover larger than €750m operating in Europe will also have to publish how much they tax they pay outside of the EU. Under current EU rules, multinational firms are required to report their taxable income on an annual basis but only if it is over 10% of their total turnover. In order to become binding, the proposals have to be backed by a qualified majority of finance ministers and the European Parliament. Officials have stated that an official list of tax havens will be available within six months.