Europe proposes greater tax transparency for multinationals
Grinding along in the background since 2016 have been a range of measures that seek to use disclosure mechanisms to rebalance various tax arrangements. This week the European Council has approved proposed measures to enhance corporate transparency of big multinational companies, as part of its action plan on reforms to the international corporate tax system.
This is more broadly known as public country-by-country reporting. The directive requires multinationals (other than banks) with a total consolidated revenue of more than €750 million in each of the last two consecutive financial years, whether headquartered in the EU or outside, to disclose the income tax they pay in each member state, together with other relevant tax-related information.
These proposals don’t currently suggest the use of Inline XBRL based disclosures (nor include them in the upcoming ESAP disclosure framework) but this would be an ideal and highly effective way to make that data sing!
Read more here.