Country-by-Country Reporting

Why the SEC Needs to Require More Disclosure from Companies

By Richard Phillips

In 2015, Citigroup reported to the Security and Exchange Commission that it has 21 offshore subsidiary companies, but it reported to the Federal Reserve that it has 140. Similarly, Bank of America reported to the SEC that it has 21 subsidiaries while reporting to the Federal Reserve that it has 109. All told, 27 financial firms report wildly different numbers to the SEC v. Federal Reserve.

So what gives and which reporting is accurate? It turns out that SEC has less stringent reporting rules, requiring companies only to disclose “significant” subsidiaries. It defines significant as comprising 10 percent or more of the company’s assets. The Federal Reserve requires broader disclosure, but only for financial companies. A CTJ comparison of the disclosures revealed big banks and other financial firms collectively are under reporting to the SEC the number of subsidiary companies by a factor of more than seven.


FACT Comments to SEC on Concept Release Urge Public Country-by-Country Reporting

Public Disclosure of Country-by-Country Tax Information Would Better Inform Investors

The Financial Accountability and Corporate Transparency (FACT) Coalition submitted comments to the U.S. Securities and Exchange Commission on Wednesday, July 6, 2016 urging that—to better inform investors—the SEC should revise its international tax disclosure framework to specifically require multinational corporations to disclose information on taxes and profits on an annual, country-by-country basis.


A Strike Against Tax Dodging

New Rules Target the Gaming of the Tax Code

WASHINGTON, DC —The U.S. Department of Treasury released new rules today to require multinational companies to report profits and taxes paid on a country by country basis.  This is the first time that this information is being gathered in the United States and shared with other nations.  The information will be filed with the IRS and shared with states’ and other countries’ tax authorities with which the U.S. has agreements to exchange tax information.


Tax Experts Push IRS to Expose Multinational Tax Dodging

FACT Members, Partners to Speak at Friday IRS Hearing on Proposed Country-by-Country Reporting Rule

Multinational Profit Shifting Costs Taxpayers $111 Billion per Year

WASHINGTON, DC — The Internal Revenue Service is holding a public hearing Friday morning on proposed rules to crack down on corporate tax dodging by requiring multinational companies to report to the IRS their profits earned, taxes paid, and employee numbers on a country-by-country basis.  Members and allies of the FACT Coalition are set to testify on the proposal, known as “country-by-country reporting”.


FACT Welcomes Anti-Tax Dodging Proposal; Urges Treasury to Strengthen, Clarify Rule

FACT Coalition Submits Comments to the U.S. Department of the Treasury and the Internal Revenue Service on Proposed Country-by-Country Reporting Rule

WASHINGTON, DC – The Financial Accountability and Corporate Transparency Coalition (or FACT Coalition) submitted comments to the U.S. Department of the Treasury and the Internal Revenue Service today offering strong support for—and recommending measures to further strengthen and clarify—a proposed rule to crack down on abusive tax avoidance by multinational corporations.