Today, EU ministers in the Competitiveness Council discussed transparency and corporate tax avoidance and, for the first time since the file was launched in 2016, a majority is taking shape in favor of finalising the negotiation of a new directive on public country by country reporting.

Tove Maria Ryding, Tax Coordinator at the European Network on Debt and Development (Eurodad), said:

“It is clear that a strong momentum is building for tougher measures to stop large-scale corporate tax avoidance. Finally, after years of delay and procrastination, we’re seeing a majority take shape among the EU Member States, in favour of moving forward with a new directive on public country by country reporting. These transparency rules will give citizens more information about where multinational corporations do business and what they really pay in tax in the countries where they operate.

“Today’s debate was extremely encouraging, and a sign that large-scale corporate tax avoidance is becoming even more politically unacceptable that it already was. As several Member States stressed, citizens across Europe are demanding that their governments step up the fight against large-scale corporate tax avoidance. Countries are losing hundreds of billions of euro to tax avoidance each year and in light of the Covid-19 crisis, it has never been more urgent to move forward.

“We are not at the finishing line yet. Firstly, we need the EU Member States to formally adopt their position so that the negotiations with the European Parliament and the Commission can move forward. We expect them to make a decision on this next week. Secondly, there will be a big and important battle in making sure that the negotiation results in effective legislation, which really provides an overview of where corporations do business and how much they pay in tax in each country where they operate. If we end up with loopholes and creative ways in which corporations can withhold information, it can undermine the entire purpose of the directive. Therefore, we will be keeping a close eye on that.”

Earlier today, the United Nations High-Level Panel on International Financial Accountability, Transparency and Integrity for Achieving the 2030 Agenda (FACTI Panel) published its recommendations on how to strengthen the global fight against illicit financial flows and international tax dodging. One of the panel’s key recommendations was that governments should introduce public country reporting. See comment from Eurodad here.

ENDS

Media Contact: Julia Ravenscroft, Communications Manager: +32 486356814/ [email protected]