CBI responds to Barnier announcement on tax reporting
The CBI responded to EU Commissioner, Michael Barnier’s speech on sustainability and reporting, which suggested that the EU will expand country-by-country tax reporting to all large companies and groups.
Katja Hall, CBI Chief Policy Director, said:
“In spite of reports, looking at the detail we are not aware of a European Council proposal to extend country-by-country reporting for financial or tax data. Our understanding is that the Council proposals being discussed are for extending non-financial country-by-country reporting only.
“The CBI does not support full country-by-country reporting on tax because rather than improving transparency it risks reducing public understanding of the tax debate by swamping people in highly complex data with no context. In addition, the cost and bureaucratic burden of full country-by country reporting on companies would run into tens of millions of pounds, which could hit growth.
“To improve tax transparency we recommend that all companies follow the CBI’s tax principles, including implementing narrative reporting. We also support a global register of beneficial owners, the automatic exchange of information and the OECD work to update international tax rules for the digital age.”