Financial Transparency Coalition

LONDON - New European plans to reveal more about multinationals’ finances will help tackle corruption in the oil, gas and mining industries - but need toughening up if they are also to help poor countries fight multi-billion pound tax dodging, says Christian Aid.

This fall is shaping up to be a critical season for financial transparency. As the Task Force on Financial Integrity and Economic Development prepares for its annual conference on October 6-7, key decisions on country-by-country reporting are anticipated in the U.S. and from the European Commission. Meanwhile, international attention to tax loss facilitated by financial secrecy continues to grow as the global economic crisis drags on. Recently, PWYP Norway’s Piping Profits report highlighted the role regulatory gaps can play in shaping the tax strategies of multinational companies, often to the fiscal detriment of the countries they operate in. The report...

On the 22 September, the Committee for Economic and Monetary Affairs (ECON) in the European Parliament passed a report containing both concrete measures and broader statements against the race to the bottom in European corporate taxation, citing the financial strain this is placing on European countries and their citizens. The EU is currently revising the parent-subsidiary directive, with the intention of preventing double or multiple taxation when the profits of a subsidiary are distributed to the parent company or companies. Too often such treaties effectively lead to double-non taxation. To address this the MEPs voted for an amendment to...

Taxation plays an important role in democratic governance and market economies. Tax revenue finances social and physical infrastructure. It reinforces national sovereignty. When coupled with good governance and institutions, it ensures that the costs and benefits of development are felt across society.