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.
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 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.
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