EU Member States endorse the automatic exchange of information of multinational companies subject to UK scrutiny

The Commission has welcomed today’s political agreement by Member States on the automatic exchange of tax-related financial information of multinational companies, known as country-by-country reporting (CBCR), subject to UK parliamentary scrutiny. The endorsement was reached at a meeting of Economic and Financial Affairs ministers in Brussels, less than two months after the European Commission presented its ambitious proposal. The new rules will apply to multinational companies which operate cross-border in the EU. Once implemented, all Member States will have the information they need to protect their tax bases and to effectively address companies that try to escape paying their fair share of taxes where they make their profits. Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs, said: “I very much welcome today’s agreement as another major step forward towards enhancing transparency on tax matters. The automatic exchange of information on country-by-country reports will provide national authorities with the necessary insight to combat aggressive tax planning structures. After the agreement reached October last year on tax rulings, this is another important signal that the EU is ready to deliver on our common goal of fair and effective taxation.” A press release is available here