The country-by-country reporting law will mean EU-headquartered companies or subsidiaries with a turnover of more than €750 million must publicly report their number of employees, net turnover, profits, corporate tax paid and nature of activities per EU member state. Companies will also have to disclose these details for any country listed by the EU as a non-co-operative tax jurisdiction, though figures for the rest of the world can be presented in aggregate. This allowed it to be passed by a qualified majority of EU member states rather than requiring unanimity, and meant Ireland could be overruled. Profit-shiftingProponents see the law as a key step in preventing profit-shifting within the EU, in which companies use subsidiaries that charge each other for services to move profits to more favourable tax jurisdictions. The deal comes amid rising international momentum to tackle aggressive tax planning by multinationals.

Source: The Irish Times June 01, 2021 19:08 UTC