The proposal brought to the table by the Portuguese Presidency of the Council of the European Union for increased fiscal transparency of multinational companies received the support of the majority of the 27. This consensus could pave the way for the adoption of new measures for combating tax evasion.
What is the CBCR?
CBCR stands for “country-by-country reporting”. These reports refer to the fiscal activities of multinational companies in the European Union with a turnover of more than EUR 750 million.
Country-by-country reporting will thus lead to information being published by these large companies, operating in different countries in the European Union, on their profits and tax payments, broken down for each one of the countries they operate in. This information must be shared with all of the Member States.
It all comes down to fiscal transparency
The directive proposing the CBCR and its public information sharing will result in increased fiscal transparency, making it possible to combat tax evasion and aggressive tax planning more effectively. The aim is for this country-by-country reporting to put the brakes on the use of offshores, augmenting fiscal justice in the entire European Union.
The push from the Portuguese Presidency
After more than five years of discussions and deadlocks, the political consensus reached in the informal video conference of Ministers for the Internal Market and Industry on 25 February is an important step towards making this country-by-country reporting, launched by the European Commission in 2016, a reality.