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MEPs call for country by country reporting

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The European Parliament passed a non-binding resolution on 8 July calling for multinational corporations to adopt country by country reporting (which requires companies to report details of their financial performance, tax details, assets and employee numbers) in order to help fight tax evasion in developing countries.

Information on beneficial ownership of companies, trusts and similar institutions should be made publicly available in open-data formats, so as to prevent anonymous shell companies and comparable legal entities being used to launder money, finance illegal activities or terrorist activities, MEPs also said.

MEPs additionally urged EU financial institutions, such as the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD) and institutions in the member states that fund development, to monitor companies or other legal entities that receive EU support and ‘ensure that they do not “participate” in tax evasion and avoidance by interacting with financial intermediaries established in offshore centres and tax havens or by facilitating illicit capital flows’.