The European Parliament’s Legal Affairs committee, on May 7, backed a draft law that would require large firms and public-interest entities to publicly report information on a country by country basis, with a goal of strengthening transparency of tax strategies.
Under the draft, firms would be required to publish information, country by country, on profit or loss before tax, taxes on profit or loss, and public subsidies received. Companies with more than 500 employees and a balance sheet total of €86 million or a net turnover of €100 million would also disclose information on tax rulings.
“It is necessary to ensure more transparency in the activities of European companies,”said Sergio Gaetano Cofferati (S&D, IT), who is steering the legislation through Parliament.
The clause was inserted in a draft law on shareholder rights and corporate governance statements. The draft empowers shareholders to vote on directors’ remuneration.
The committee approved a mandate to start informal talks with the Council by 13 votes to 10, with a view to reaching a first-reading agreement.
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