The FT has reported a development on country-by-country reporting this morning (link to follow):
European banks are facing the threat of having to reveal their taxes and profits on a country-by-country basis in the latest twist to the EU negotiations over rules to make banks safer.
The European parliament is pressing for the tougher disclosure regime along with a demand for strict curbs on bankers' bonuses as part of the law implementing the Basel III international accord.
While the demanding transparency requirements have the full support of the European Commission, EU member states are largely resisting the initiative, introduced into the overhaul of bank capital rules.
Under the proposal, Barclays, for instance, would be required to publish its profits and taxes in every national jurisdiction — from the UK to Zimbabwe.
Ten tears ago I slipped country-by-country reporting onto an unsuspecting world. It's making progress.
But note something important. It is said the member states oppose this move. Now ask the question why don't Cameron, Osborne & Merkel want to publish data for a key sector where tax abuse has been rife? Surely if they were committed to tackling tax avoidance they would be jumping up and down with enthusiasm for this? That they are not tells us a great deal. We still have a long way to go.
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Shared this post to Facebook and had a friend post this reply. Wasn’t aware of this. Would appreciate your knowledge/thoughts RE: Japan. Thanks.
SJ: “If you transact in a country a corporation should be fully liable for tax in that country. It shouldn’t matter where they are domiciled. The Japanese have this bang to rights. It doesn’t matter – if you sell to a Japanese consumer you are deemed to be trading in Japan and liable to pay full tax. You can be a shell company in the Cayman Islands but you still have to pay tax as if you were a Japanese company. They ensure this by making the consumer pay at point of import if its foreign goods or ensuring full declaration by the company transacting. By doing this they remove any unfair advantage. At the end of the day tax evasion robs the people.”
Interesting
I confess I know little about Japan
Thank you. Appreciate your honesty. Honesty is key here. Thank you. I know less about Japan. I’m not an expert. And will see if can research further.
And if accurate may provide an intermediate step for countries to “block” effects international tax evasion.
Thank you for all you do. You are extraordinary.