{"id":11024,"date":"2011-07-13T10:19:09","date_gmt":"2011-07-13T09:19:09","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=11024"},"modified":"2011-07-13T10:19:09","modified_gmt":"2011-07-13T09:19:09","slug":"first-full-country-by-country-reporting-standard-proposed-in-u-s","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2011\/07\/13\/first-full-country-by-country-reporting-standard-proposed-in-u-s\/","title":{"rendered":"First Full Country-By-Country Reporting Standard Proposed in U.S."},"content":{"rendered":"

Yesterday\u00a0U.S. Senator Carl Levin introduced the\u00a0\u00a0Stop Tax Haven Abuse Act (STHAA). <\/a> The bill proposes solutions to loopholes and vulnerabilities in American policy that allow corporations to escape taxes. \u00a0Tax evasion currently costs American taxpayers over $100 billion each year.<\/p>\n

Introducing the bill, Senator Levin said:<\/p>\n

The bottom line is that each of us has a legal and civil obligation to pay taxes, and most Americans fulfill that obligation.\u00a0 It is time to force the tax scofflaws, the tax dodgers, and the tax cheats to do the same, and end their misuse of offshore tax havens.<\/p><\/blockquote>\n

In order to do so, the STHAA would\u00a0provide the IRS, SEC, and law enforcement with new resources for detecting illicit financial activity, remove loopholes that allow misleading activity, and increase penalties on those abusing the financial system.<\/p>\n

The bill, which requires annual country-by-country reporting \u201con employees, sales, financing, tax obligations, and tax payments\u201d\u00a0by all corporations registered with the SEC, marks\u00a0the first time a\u00a0full\u00a0\u00a0country-by-country reporting<\/a> standard\u2013one of the Task Force\u2019s major priorities\u2013has been introduced in the United States\u00a0. <\/em>Requiring greater transparency from multinationals will help prevent tax evasion, transfer pricing, and other illicit international transfers of money. \u00a0Country-by-country\u00a0reporting has\u00a0been identified by the Task Force as a priority in improving corporate accountability and preventing illicit capital flight.<\/p>\n

Global Financial Integrity director Raymond Baker commented on the addition, stating:<\/p>\n

For investors, the more information available about a company\u2019s business practices and balance sheets, the better. This reporting requirement would also help anti-corruption and economic development efforts in developing countries by creating more transparency and accountability in the business dealings between multinational companies and governments.<\/p><\/blockquote>\n

Access to increased information is a boon to the private sector as well as the government, allowing investors to better\u00a0evaluate\u00a0the financial health of firms.<\/p>\n

The bill is cosponsored by Senators\u00a0Bill Nelson, Sanders, Shaheen, and Whitehouse, and is supported by a wide range of advocacy and business groups, including Global Financial Integrity,\u00a0Tax Justice Network, Citizens for Tax Justice, Global Witness,\u00a0the FACT Coalition,\u00a0and Business for Shared Prosperity,\u00a0among others.<\/p>\n

Links:<\/strong><\/p>\n