Corporate Transparency and Accountability Act Would Better Inform Investors on Tax Risks Associated with Multinational Companies
WASHINGTON, D.C. – Rep. Mark Pocan (D-WI) today introduced a new bill, which would shine a light on the offshore tax practices of multinational companies. The Corporate Transparency and Accountability Act of 2016 (H.R.6126) would require publicly-traded multinational companies to report in their disclosure statements to investors information about revenues, profits, taxes, and certain operations on a country-by-country basis. The Financial Accountability and Corporate Transparency Coalition, or FACT Coalition, welcomed the move in a letter to the bill’s sponsor.
Clark Gascoigne, the deputy director of the FACT Coalition, issued the following statement:
“With nearly two and a half trillion dollars booked offshore and governments cracking down on abusive tax avoidance, shareholders are increasingly at risk from the dearth of information available to them about the tax practices of the companies in which they invest. One need look no further than the decision requiring Apple to pay billions in back taxes to understand the growing risk. The bill calls for the kind of transparency that makes markets safer, more stable, and serve the needs of investors.”
The FACT Coalition’s letter in support of the legislation can be found here.
The bill introduction comes one week after a FACT Coalition report showcased how shareholders are increasingly at risk from the lack of disclosure of corporate tax practices. The topic was likewise highlighted yesterday in an op-ed in The New York Times by former BlackRock, Inc. Managing Director Morris Pearl as well as at an event Tuesday at the Center for American Progress Action Fund co-sponsored by FACT and a number of other organizations.
Notes to Editors:
- Click here to read an HTML version of this release on our website.
- Click here to read FACT’s letter in support of the legislation.
- Click here for more on the legislation from Rep. Mark Pocan’s website.
- Read FACT’s new report, “A Taxing Problem for Investors: Shareholders Increasingly at Risk from Lack of Disclosure of Corporate Tax Practices,” published September 12, 2016.
- Read former BlackRock Managing Director Morris Pearl’s op-ed in the New York Times, “How Companies Like Apple Dodge Taxes and Their Own Investors,” published September 21, 2016.
- Watch a video of Tuesday’s event at the Center for American Progress Action Fund, “Toward A Sustainable Economy: Transparency, Long-Termism, and the SEC,” co-sponsored by FACT and seven other groups. Click here for more on a joint report published Tuesday by CAP, FACT, and several other groups on the need for more disclosure at the SEC.
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