FEE responds to European Commission proposal on public country-by-country reporting

  • FEE (Federation of European Accountants - Fédération des Experts-comptables Européens) (lt green) Image

17 Nov, 2016

In April 2016, the European Commission adopted a proposal for a Directive which imposes on EU and non-EU multinational groups the publication of a yearly report on the profit and tax paid and other information. The Federation of European Accountants (Fédération des Experts-comptables Européens, FEE) has commented and believes that a European solution can only be a pragmatic first step.

The Commission proposal would amend the Accounting Directive to ensure that large groups publish annually a report disclosing the profit and the tax accrued and paid in each Member State on a country-by-country basis.

In its letter, FEE supports the initiative for more transparency and restoring trust in tax systems as high quality corporate reporting is in the public interest. FEE also notes that the information produced must be useful and meaningful, that the form and date of publication should be clarified, and that clearer guidance on materiality is needed. Overall, FEE sees some of the proposed amendments as "pragmatic first step" and believes that the EU should strive for a global standard.

Like with other tax initiatives in past years, greatest effectiveness would be ensured through international coordinated initiatives. Therefore, the Federation would suggest that the EU improves international coordination in this field with relevant bodies such as the OECD, the UN, the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB).

Please click to download the full letter from the FEE website.

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