Adoption issues over country-by-country reporting

Published in April 2016, the European Commission proposal for public country-by-country reporting of results by large companies continues to face legal disagreements between the European Parliament and the Council of the EU, which represents the interests of the 28 member states.

MEPs and member states disagree on the legal basis upon which the text should be adopted. MEPs, supported by the European Commission argue that the proposal is within the scope of European Competition policy as harmonising the conditions of the single market. This would mean an ordinary adoption procedure where the legislation is adopted jointly by Parliament and the Council.

On the opposite side, for certain member states at the Council the proposal contains tax measures that belong to the sole competence of member states. Such proposal would have to be adopted by the unanimity of the member states, with only a consultative role from the Parliament.

During an exchange of views on 12 January 2017 at the Legal Affairs Committee at the European Parliament, the Maltese Presidency promised to do its best to come to a solution before the end of June. The Council will start its work based on the draft report from the European Parliament released on 9 February.

This report contains stricter amendments to strengthen the initial proposal from the Commission, including a lower threshold in turnover for companies to start disclosing tax and profits information on a country-by-country basis and a larger geographical scope of jurisdictions impacted.

Share with others

Subscribe to our newsletter

* indicates required
Interests

By subscribing to our newsletter, you agree that we may process your information in accordance with our Privacy policy.

You can change your mind at any time by clicking the unsubscribe link in the footer of any email you receive from us, or by contacting us at enquiries@ferma.eu.

We use MailChimp as our marketing platform. By subscribing to our newsletter, you acknowledge that your information will be transferred to MailChimp for processing. Learn more about MailChimp’s privacy practices here.

Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.

3rd Party Cookies

This website uses Google Analytics to collect anonymous information such as the number of visitors to the site, and the most popular pages.

Keeping this cookie enabled helps us to improve our website.