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European Commission proposes public tax transparency rules for multinationals

  • European Union Image

Apr 12, 2016

On April 12, 2016, the European Commission issued a press release announcing that it is proposing that the EU Accounting Directive be amended to require multinationals operating in the EU with global revenue exceeding EUR 750 million ($1.08B CAD) a year to publish key information on where they make their profits and where they pay their tax in the EU on a country-by-country basis.

The same rules would apply to all multinationals doing business in Europe. Companies also would be required to publish an aggregate amount for total taxes paid outside the EU. The rules would be designed to ensure that large groups publish annually a report disclosing the profit and the tax accrued and paid in each EU member state on a country-by-country basis. Information about the company's turnover (or revenues), number of employees and nature of activities would have to be disclosed for every EU member state in which a company is active, as well as for jurisdictions that do not abide by tax good governance standards, i.e. tax havens.

Review the press release on the European Commission's Web site.

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