Accountancy Briefing: the benefits of country-by-country reporting

May 27th, 2010

Tax Research UK

A May 2010 briefing from Tax Research UK (prepared by Richard Murphy) explains the benefits of an international country-by-country reporting standard.

In short, the briefing explains that country-by-country reporting would:

  • Provide a stakeholder view of accounting;
  • Create reporting of results by country, without exception, which has previously been unknown;
  • Provide a new view of corporate structures;
  • Impart a new understanding of what the business of a corporation is, and where it is;
  • Opens up a new perspective on world trade because intra-group transactions would be reported for the first time in multinational company accounts;
  • Give a new view of world labour markets;
  • Create an entirely new tool for geo-political risk profiling of companies;
  • Permit better appraisal of corporate contributions to the governments that host their activities and in the process contribute to constraining corruption on the part of some recipient governments;
  • Provide better awareness of the true extent of tax haven activity;
  • Allow measurement of tax lost through tax planning by corporations through the relocation of profit;
  • Provide a better understanding of the physical resource allocation of the corporate world.

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