EU Formally Proposes Public Disclosure | KPMG | CA

EU Formally Proposes Public Disclosure of Country-by-Country Information

EU Formally Proposes Public Disclosure

Global Tax Adviser, April 19, 2016. The EU is moving ahead with plans to require certain large multinational groups to publically disclose detailed country-by-country information on their websites. The proposal, which still must be approved by the European Parliament before it is adopted, affects multinational groups with an EU parent company or EU subsidiaries or branches. Any multinational company—whether European or not—that has an active, permanent presence in the EU's single market would have to comply with this public reporting requirement if their revenue is in excess of €750 million.

1000

Related content

The proposal would require large multinational companies to annually file and publish a report that discloses the profits and taxes that they have accrued and paid in each EU member state on a country-by-country basis. This information would remain publically available on the company's website for five years. If adopted, the new measures would have to be incorporated into national legislation by all EU Member States, within one year after its entry in force.

Information for public disclosure The report would require information on all members of the group (i.e. including non-EU members) within seven key areas:

  • The nature of the company's activities
  • The number of its employees
  • The total net turnover (revenue) made, which includes the turnover made with third parties as well as between companies within a group
  • The profit made before tax
  • The amount of income tax due in the country as a reason of the profits made in the current year in that country
  • The amount of tax actually paid during that year
  • Accumulated earnings.

The final proposal says that the EU should adopt a “Common Union list' of certain tax jurisdictions which do not comply with principles for transparency and exchange of information, or other relevant standards. Tax information relating to operations in these jurisdictions must be reported on a disaggregated basis.

The report must also include an overall explanation for material discrepancies between reported amounts of income tax accrued and income tax paid.

For more information, contact your KPMG adviser.

Disclaimer

Information is current to April 19, 2016. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500

Connect with us

 

Request for proposal

 

Submit