Renew Europe shapes new law to make big companies pay taxes in the countries they make profits and increase tax transparency
After five years of political deadlock, the European Parliament reached an agreement with EU governments on the country-by-country reporting (pCBCR) legislation, which will increase transparency and tax justice by obliging big companies to disclose where they make their profits and where they pay their taxes.
The Renew Europe negotiators introduced key transparency measures, such as obliging companies to display the full list of subsidiaries, and pushed for Parliament to review legislation in four years, instead of five years.
Stéphane Séjourné, MEP, Renew Europe negotiator and member of the Economic affairs (ECON) and Legal affairs (JURI) committees, declared:
¨This is a major victory for transparency and fiscal justice. Europe is taking a step forward in the fight against tax evasion by making it compulsory for the world’s largest multinationals to publish information on their taxation country by country. More specifically, the nature of their activity in the states in which they operate, the number of employees and their profits. It is fair for European citizens and it is fair for all other companies, which pay their proper taxes in Europe.¨
On the role of Renew Europe during the negotiations, he concluded:
¨We have obtained a balanced agreement that will allow everyone to have free access to comparable data, while ensuring the competitiveness of our companies at the international level by protecting the most business sensitive information¨