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European Parliament’s stance on tax transparency

The European Parliament has passed a non-binding resolution calling for multinational corporations to adopt country by country reporting; this requires companies to report details of their financial performance, tax details, assets and employee numbers.  This is designed to prevent tax evasion in developing countries.

The Parliament also stated that information on beneficial ownership of companies, trusts and similar institutions should be made publicly available in open-data formats.  This will help to prevent anonymous shell entities being used to launder money, or finance illegal activities or terrorist activities.

The Parliament additionally urged EU financial institutions that fund development to monitor companies or other legal entities that receive EU support and ‘ensure that they do not participate in tax evasion and avoidance’.

I am not sure how widely EU support could be defined; would it encompass standard issues such as Research & Development credits or Enterprise Investment Scheme relief?

 

 

Date: 3rd August, 2015
Author: Cathy Corns

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