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European Committee assesses public CbC reporting

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The European Scrutiny Committee (ESC) has published its 40th report on recent draft EU legislation and policy documents deposited in Parliament by the UK Government. The ESC gauges the legal and political importance of each legislative proposal, document or policy and, where appropriate, inquires further on its implications and/or recommends it for debate in Parliament. Subjects identified as legally and/or politically important in this instance include the European Commission’s cybersecurity strategy and revised Network and Information Systems Directive, the adequacy of data protection afforded by the Retained Regulation (EU) 2016/679 (UK GDPR), market access for goods under the Northern Ireland Protocol, and the public country by country (CbC) tax reporting of multinationals in the EU.

The committee’s report notes that ‘although the UK government has repeatedly said it would consider introducing CbC tax reporting requirements for large companies under UK law on a multilateral basis, it is unclear if ministers would be willing to take that step in tandem with the EU – especially given the current political tensions in the UK/EU relationship – should the latter formally require all its member states to make such disclosures mandatory’. The committee has written to Steve Barclay, Financial Secretary to the Treasury, to ask for the UK Government’s view.

It is not yet clear whether EU member states will reach agreement on legislation to introduce public CbC reporting, with a number of countries (including Germany) having previously opposed the proposal.

Issue: 1525
Categories: News