Australia’s recently-introduced public country-by-country reporting legislation would dramatically improve tax transparency for major multinational corporations, benefiting investors, lawmakers, journalists, and the general public.
The Foreign-Derived Intangible Income (FDII) deduction benefits relatively few companies, costs the U.S. tens of billions annually in lost revenue, and perversely encourages corporations to move jobs and investment abroad.
FACT releases a new policy platform to guide multinational tax reform in 2025, and Treasury and the SEC release joint proposal introducing anti-money laundering safeguards for investment advisers.
With negotiations surrounding the expiration of large parts of the 2017 Tax Cuts and Jobs Act already underway, lawmakers must move quickly to close costly loopholes, prevent offshoring of jobs and profits, and provide adequate tax transparency for U.S. multinational corporations.
While Australia’s revised public country-by-country reporting draft legislation walks back the original measure’s ambitious scope, it still represents a meaningful step forward for multinational tax transparency.
