PES welcomes EU progress on tax justice
Public country-by-country reporting (pCBCR) will make it easier to guarantee that the profits of big multinational corporations are taxed fairly, the PES said today as it welcomed the news that an EU deal on pCBCR has been secured.
PES President Sergei Stanishev said:
“This is a win for tax justice and our fight to make sure big multinationals pay what they owe. These proposals will help prevent the richest corporations from using clever accounting to slash the taxes they pay.
“For months, public money has flooded into the private sector to support jobs and help struggling businesses get through the pandemic. At the same time, some companies are making record profits. As tax scandals have shown, many multinationals are determined to hide this wealth. This is the cause of great anger from the public, and it is right that the EU is acting to increase transparency. Everyone must contribute fairly to the recovery and the shift to a greener economy.
“Thanks to the initiative of the Finnish Presidency, Evelyn Regner MEP and the S&D Group, and now the Portuguese Presidency who got the negotiations over the line, EU pCBCR is becoming a reality.”
EU pCBCR obliges multinational companies with an annual turnover of more than €750 million in each of the last two consecutive financial years, whether headquartered in the EU or outside, to publicly disclose income tax information in each Member State, as well as in certain third countries. This information will cast light on where multinationals make their profits and where they pay their taxes. It will complement already existing legislation on automatic exchange of tax information and means multinationals will be more accountable to the public and other taxpayers.