EU to Make Big Cos Come Clean on Tax

The Economic Times - - Around The World -

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.

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