EU Parliament committee pushes for State aid review of multinationals’ country-by-country tax reports

The EU Parliament’s Economic and Monetary Affairs Committee on Tuesday approved a report proposing to give the EU Commission full access to country-by-country reports of multinationals that are exchanged by Member State tax authorities once such reporting is underway in Europe.

The committee report, prepared by Dariusz Rosati (EPP, PL), was approved 45 votes in favor, zero against, with 11 abstentions.

“There is also a State aid dimension to unfair tax practices in the field of corporate taxation. The Commission, too, should therefore also have access to the information exchanged between Member State tax authorities in order to ensure compliance with the relevant competition rules,” the report said.

The report concerns a Commission proposal to amend the existing administration cooperation directive by setting out the scope and conditions for mandatory automatic exchange of country-by-country reports between Member State tax authorities. EU finance ministers in March reached political agreement on proposal, which follows OECD/G20 base erosion and profit shifting (BEPS) plan standards.

The EU Parliament committee report said that the Commission needs to be part of the automatic exchange, while fully respecting the rules on confidentiality.

See:

• Report

Related MNE Tax articles:

• EU to require country-by-country tax reporting, limited public release of data likely