Multinational companies do not publicly report on where they are making their money or what taxes they are paying to whom. Investors, policymakers, and citizens have no idea exactly how they are gaming the system—what they tell us versus what they tell other countries. They should have to write it down in one place and report it on a country-by-country basis, so that the public, policymakers, and shareholders can see what they are really paying.
Clark Gascoigne, the deputy director of the Financial Accountability and Corporate Transparency Coalition (FACT Coalition) delivered remarks on a press call with reporters as the AFL-CIO and Domini Impact Investments announced that they were filing a shareholder resolution with Nike calling for responsible tax practices in the wake of the Paradise Papers leak.
Boosting Tax Transparency to Guard Investors, Protect Taxpayers, and Inform Policymakers
Disclosing more information on where companies book profits, record revenues, and pay taxes would protect taxpayers by discouraging abusive tax avoidance schemes; protect shareholders by providing them with information about the risks associated with their investments; and inform policymakers as Congress considers overhauling the U.S. tax code.
Sixteen members of the House of Representatives sent a letter to the Financial Accounting Standards Board (FASB), urging them to require multinational companies to be more transparent in reporting where they pay taxes and book profits. Specifically, they called on the accounting body to require that companies disclose their taxes and profits on a country-by-country basis.
The Financial Accountability and Corporate Transparency Coalition (FACT Coalition) sent a letter to members of the European Parliament in support of an amendment; which would make corporate tax disclosures public. The full letter can be read below or downloaded here.
In a post Panama Papers world, secrecy seems to be losing its caché. Public officials and the citizens they represent express increasing frustration with the hidden finances of powerful multinational companies and the ultra-wealthy.
In recent months, tax enforcement in the European Union (EU) has been stepped up with cases accusing tax haven countries of providing illegal state aid, aggressive tax avoidance strategies are being challenged and there is a promising push for greater financial transparency and accountability.
The Financial Accountability and Corporate Transparency Coalition (FACT Coalition) sent a letter to Rep. Mark Pocan supporting H.R. 2057 which should serve as a template for positive tax reform. The full letter can be read below or downloaded here.
