Foray into global tax fraught with challenges
20 June 2013
Posted by: Author: James Politi
Author: James Politi
US business groups have been opposed to even the smallest foray into the kind of country-by-country tax reporting debated by Group of Eight leaders, highlighting the challenges in implementing such provisions even·ifagreementis reached in Northern Ireland.
A key plank of the G8 agenda to boost tax transparency by multinationals has been to force them to at least disclose how much tax they pay in each country.
The EU and the US have taken steps in that direction with regard to oil, gas and mining companies, but applying these requirements to all sectors is expected to be resisted across the corporate world.
In the US, the provision requiring country-by-country reporting in the energy sector, buried inside the Dodd-Frank Wall Street reform bill enacted three years ago, has been the subject of a legal challenge and lobbying to kill it before it takes effect next year.
They are having a heart attack about it, said one Democratic aide in the Senate, who supports country-by-country reporting. The aide said it was a minor miracle that the provision made it into the 2010 bill.
In the EU, the debate surrounding country-by-country tax reporting is more advanced. In the wake of the US Senate hearing on Apples schemes to minimise its international tax bill last month, the EU floated a proposal to expand such reporting requirements beyond the energy sector and banks to every multinational.
For the story, go here.