EU directive on tax data passed

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