Yes, so would we… And now there’s an action today on twitter which we can all take to help this become reality.
All EU banks have been obliged to report their profits and tax paid on a country by country basis since 2015. And not just to tax authorities behind closed doors, but publicly. Because of that we now know for example that “Europe’s 20 biggest banks are registering over a quarter of their profits in tax havens – well out of proportion to the level of real economic activity that occurs there.” We also now know that Barclays (the 5th biggest European bank) registered €557m of its profits in Luxembourg and paid only €1m in taxes in 2015 – an effective rate of 0.2%. You can read more on all this in Oxfam’s report Opening the Vaults: The use of tax havens by Europe’s biggest banks.
Bringing these facts into the daylight creates considerable pressure on governments to take action. But now we need to extend *public* country-by-country reporting urgently to all multinationals. It is unacceptable in the 21st century that multinational companies can continue to obscure the real contributions they make to the societies from where they make their profits.
Here is the text of a letter of complaint that TJN will be handing in to the European Commission at its office in London this afternoon.
On 23rd January 2016 the UK Chancellor of the Exchequer, George Osborne, tweeted from Davos that the UK Government had struck a deal with Google over its past tax liabilities. The deal was disclosed at the specific request of Google.
TJN is concerned that deals have been secretly struck with by HM Revenue & Customs with other companies which have not been disclosed to the public.
We are therefore calling on the European Commission to investigate the Google deal, and also to investigate other so-called sweetheart deals with multinational companies that have not been publicly disclosed.
Read our letter below
PRESS RELEASE FROM SOMO: Mapping Tax-free investments
New interactive website shows which European countries facilitate tax dodging through mailbox companies.
Today, the Centre for Research on Multinational Corporations (SOMO) launches a new interactive website that visualises bilateral investments of European countries. A new comparison between UNCTAD and IMF data illustrates the scale of tax avoidance through mailbox companies and selected tax havens.
The European Commission has just announced a formal investigation of the tax agreement struck between McDonald’s and Luxembourg. Read the full press release here, also read the Unhappy Meals report on McDonald’s tax avoidance schemes. There are many reasons to boycott McDonalds; add tax avoidance to the list.