Task Force Publishes New Accounting Report
June 18th, 2009
June 18th, 2009
The Task Force on Financial Integrity and Economic Development has just released a new report detailing a new system of accounting for multinational corporations (MNCs) which is designed to shine some light on the current reporting system.
From the press release:
Termed “country-by-country reporting” the new protocol would require MNCs to disclose the full details of their commercial transactions by jurisdiction, instead of the current system which requires reporting along product of division lines. As much as 60 percent of global trade currently takes place within MNCs, which are not required to disclose many salient details of their trade practices under the existing regulatory framework.
“Tax evasion by multinational corporations is one of the greatest drivers of illicit capital flight out of the developing world,” said Global Financial Integrity director Raymond Baker. “County-by-country reporting is a low-cost, readily implementable way to ensure better business compliance with tax policy and fair business practices. The Task Force applauds the UK’s announcement earlier this week that it would push for country-by-country reporting at next week’s meeting of the Group of 20 in Berlin.”
The timing for this report couldn’t be better as country-by-country reporting continues to pick up momentum thanks to recent campaigns by Christian Aid and Tax Justice Network (both Task Force members). Indeed as Raymond Baker mentions in the above press release, the UK Treasury came out in support of country-by-country reporting this week, and has signaled that they would push for it at next weeks meeting of OECD/G20 ministers in Berlin. We can only hope that this report will further all of those efforts.
Check out the full report here.
🚨@FinTrCo & 36 global civil society orgs call for US to tackle its black hole of financial secrecy undermining demo… https://t.co/c9YXSj1fUm
- Wednesday Mar 29 - 2:32pm