EU to Make Big Cos Come Clean on Tax
The European Commission is bringing forward plans to make major multinationals such as Google, Amazon and Facebook disclose exactly where and how much tax they pay across the continent.
The draft legislation being tabled on Tuesday was proposed before the latest Panama Papers scandal, but comes amid a growing clamour to force the biggest companies to pay their fair share.
The plan was expected to include rules requiring businesses earning more than £600 million a year to open up their tax affairs to public scrutiny, revealing their profits and accounts in every country in which they operate within the EU. Since the Panama Papers, a new clausehasreportedlybeenaddedtorequire the companies to say how much money they make in so-called “tax havens”. A final, more general statement would reveal profits in the rest of the world, treated as a single item.
According to The Guardian, commission president Jean-Claude Juncker is said to be in favour of pushing through the initiative.
Butishascomeunderearlyfirefrom both campaigners who say it will be toothless and business groups warning some multinationals could be put off operating in Europe altogether.
There are also some concerns surrounding the fact that there is no commonviewbetweenEUmembersstates on what constitutes a tax haven.
The plans will be presented by Britain’s EU Commissioner, Lord Hill.