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This Monday, the committee on economic and monetary affairs (ECON) as
well as the legal affairs committee (JURI) of the European Parliament
voted on new tax transparency rules for transnational companies. The
Commission suggested that transnational companies are required to
publish key tax data on a country-by-country basis for the EU-28 as
well as for countries blacklisted as tax havens. Data for other third
countries should only be reported on an aggregated level. The text
adopted today significantly improves the Commission proposal and brings
more transparency (1). The Greens/EFA group would have favoured
stricter rules than adopted in committee today. Therefore, we insisted
on a plenary vote on the negotiation mandate of the European Parliament
for the upcoming trialogue. MEP Sven Giegold, financial and economic
policy spokesperson of the Greens/EFA group commented:
"With this result, we are creating more justice for all taxpayers and
fair competition for small and medium-sized businesses. It is a great
success that the European Parliament has withstood the pressure from
the Member States and many companies. This makes it more difficult for
large corporations to avoid paying taxes where profits are generated.
With his blocking in Council, Germany's Federal Minister of Finance,
Wolfgang Schäuble, helps multinationals to conceal their harmful tax
practices before the public.

It is a shame that in the committee the conservative-liberal coalition
together with the eurosceptic conservatives have introduced exemptions
for corporations that could take the entire reporting to an absurdum
(2). The same coalition also prevented a reduction of the high
threshold for reporting companies of 750 million Euro turnover per
year. In order to take effective measures against tax dumping, public
country-by-country tax transparency must not be limited to a few
companies. For banks and raw materials extraction companies,
transparency has long been established and is universally accepted."


Background:

The Greens / EFA Group has abstained in the vote because of exception
rules inviting for abuse by corporations and will work to improve the
compromise until the vote in plenary (presumably in July 2017).

(1) The EU Parliament calls on the EU Commission to review the 750
million Euro threshold. In addition, companies must publish more data
and the data must be broken down for all third countries, not just for
EU Member States and tax havens.

(2) Companies which are able to prove that the publication of certain
data from third countries would result in competitive disadvantages
must not publish this data. The Greens / EFA Group wanted to limit this
derogation, but this could not be achieved.


Proposal of the European Commission:
http://www.sven-giegold.de/wp-content/uploads/2017/06/COM_COM20160198_EN.pdf

Draft report of the co-rapporteurs in the European Parliament:
http://www.sven-giegold.de/wp-content/uploads/2017/06/Draft-Report-CbCR.pdf

Draft compromises of the amendments tabled by the European Parliament:
http://www.sven-giegold.de/wp-content/uploads/2017/06/CBCR-updated-compromises-09-06-2017.pdf

 

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