The Strategist

The EU To Force Multinational Corporations to Disclose Their Incomes

02/08/2016 - 15:31

US multinational corporations such as Google, Facebook and Amazon, will be required to disclose data about their incomes earned in the European Union (EU) and their income tax payments as well. The relevant draft legislation is being developed by a European Commission (EC) now. It will be presented on 12 April. For the bill to be passed, this initiative should be supported by all 28 EU member states. According to preliminary data, the Head of EC Jean-Claude Juncker stands for the implement of incomes disclosure. It is noted that the law will apply not only to European companies, but also to companies from the United States as well.

Jonathan Pollinger
Jonathan Pollinger
As it was reported earlier, British Prime Minister David Cameron said he intended to clear the kingdom out of offshore companies and foreign owners who were buying real estate for the money laundering. He also said he wanted to establish a register which should conclude data about the owners and beneficiaries of those “shadow” companies that were specified in the documents as buyers.
The Transparency International report has become one of the signals to the action. According to this report, every tenth real property item in central London is registered in the offshore company. In total, such items amount is more than 36 thousand in the UK capital. In England and Wales, offshore structures own the real estate for a total of £ 120 billion. In turn, this led to a significant market prices increase, which has been observed for several years for now and forced Londoners to buy housing farther from the city center.

Earlier in his speech Mr. Cameron promised to do everything possible for Great Britain to not become another haven for offshore companies and corrupt money from around the world. To this end, a land registry is planned to be established this fall, which will disclose the names of all the owners and beneficiaries of the shadow structures that were listed while buying property in the documents. Now the country has a similar registry, which includes only the names of the legitimate owners. That's about 2.2 million British companies and more than 90 thousand companies registered in offshore zones. However, the names of those who stand for the shadow structures are not available in this list now.
"I want Britain to become the most open country for investments. But I want to be sure that all the money is pure money. Dirty money has no place in Britain. In principle, it should have no place anywhere in the world ", Prime Minister said in his speech.

According to the estimates of Tax Justice Network research group, the shortfalls in incomes from the tax evaders of the world countries as a whole exceeded 50% of global spending on health by 2011. Estimates of losses vary from country to country. According to the EC, EU Member States usually lose up to € 1 trillion per year because of tax evasion practices by companies and individuals. US Congress gives a figure of $ 100 billion a year.