Development MEPs called on companies in all countries to adopt country-by-country reporting and make all information public in order to fight tax evasion and illicit money flows in developing countries, in a resolution adopted on Monday afternoon. It also called on the EU’s financial institutions to ensure that companies receiving EU support do not participate in tax evasion and avoidance.
“Given the importance of better mobilisation of domestic resources and the problems that developing countries face in tackling tax evasion and tax avoidance, we need a list of strong recommendations that the EP should support, in view of the Financing for Development Conference to be held in Addis Ababa and the range of existing international initiatives to reform the global tax system,” said the rapporteur, Elly Schlein (S&D, IT), in her report.
Country-by-country reporting and publicly available information
MEPs say that listed and unlisted multinational companies in all countries and sectors, especially companies extracting natural resources, must adopt country-by-country reporting (CBCR) as standard. This requires them to publish as part of their annual report, on a country-by-country basis for each territory in which they operate, the names of all subsidiaries, their financial performance, relevant tax information, assets and number of employees, and to ensure that this information is publicly available.
The original article can be found at www.europarl.europa.eu