Civil Activists Demand Greater Controls Over Multinationals

December 17, 2013 International Tax Cooperation

BRUSSELS – European corporations are actively and aggressively minimizing their tax obligations in developing countries, and new controls need to be established in order to put a stop to the problem.

According to a joint report released on December 16th by 13 civil society organizations, and prepared under the coordination of EuroDad, European businesses operating in developing countries are responsible for as much as GBP 870 billion of tax-related capital flight annually.

As indicated in the newly published report, the misconduct of multinationals is possible due to a lack of regulatory control over the overseas business activities of European corporations, and also due to an inadequate level of cooperation on tax information exchange between European governments and developing countries.

In their report the civil society groups urged for immediate pan-European action on the issue, and among the key steps, they called for obligatory disclosure of all information on beneficial owners, and for mandatory provision of details of the corporate structuring and financial statements of all overseas business activities from each particular jurisdiction.

In data for the report was sourced from the Czech Republic, Denmark, Finland, France, Hungary, Ireland, Italy, Luxembourg, Netherlands, Slovenia, Spain, Sweden, the United Kingdom,

Photo by: Department of Foreign Affairs and Trade