Read FACT policy director Zorka Milin’s full written testimony before the Senate Budget Committee, which details policy recommendations to curb offshore tax evasion by individuals and major multinationals.
The FACT-endorsed Disclosure of Tax Havens and Offshoring Act requires large multinational corporations to begin public country-by-country reporting of tax and operational data to the Securities and Exchange Commission.
The Disclosure of Tax Havens and Offshoring Act would shine a light on the abuse of offshore tax havens by requiring multinational corporations to publicly report overseas tax and operational data on a country-by-country basis.
“We are pleased that Chair Gensler indicated today that the SEC is looking at the need for increased tax and financial reporting by big multinational companies to inform investors and other stakeholders,” said FACT Executive Director Ian Gary.
Without public country-by-country reporting, investors have little knowledge about the tax strategies of companies they own and the degree to which they may be engaging in risky tax behavior. The Securities and Exchange Commission must address the chasm between what companies know and what they disclose to investors.
Recent progress achieved through creating a global minimum corporate tax must be complemented by greater tax transparency and enforcement. As the saying goes, “sunlight is the best disinfectant.”
