EU di­rec­tive on tax data passed

The Star Early Edition - - BUSINESS REPORT -

THE EURO­PEAN Par­lia­ment yes­ter­day passed a di­rec­tive re­quir­ing big multi­na­tion­als to re­port tax and fi­nan­cial data sep­a­rately in all coun­tries where they op­er­ate, a mea­sure aimed at tack­ling tax avoid­ance and profit shift­ing to coun­tries with lower taxes. The new rules are part of a wider over­haul of tax reg­u­la­tion spurred by the so-called Panama Papers and other rev­e­la­tions of wide­spread tax avoid­ance by com­pa­nies and wealthy in­di­vid­u­als. They do, how­ever, still need ap­proval from the EU mem­ber states in com­ing months, and would then have to be en­acted into na­tional law in each coun­try within a year. EU coun­tries lose be­tween €50 and €70 bil­lion (R748bn and R1.05 tril­lion) in rev­enues ev­ery year, be­cause of tax avoid­ance. Firms with ac­tiv­i­ties in the EU and an an­nual turnover of at least €750 mil­lion will have to dis­close data such as prof­its, rev­enues, taxes paid and num­ber of em­ploy­ees. – Reuters

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.