As the European Parliament today voted to support proposals for country-by-country reporting (CBCR) of financial information, Bristol’s Green MEP, Molly Scott Cato, who is also the Green Party speaker on finance, has insisted that this improvement to tax transparency must form part of any post Brexit trade deal between the UK and EU. The legal change agreed today will extend CBCR beyond the banking sector to cover all sectors and would require large multinationals operating within the EU to publish financial information for all territories in which they operate. Molly said:
“After years of campaigning, this is a big victory for all those who have worked hard for tax justice. Public country-by-country reporting will make it much harder for multinational corporations to shop around for the lowest possible tax rate, and help bring illegal activity to light. That means more money for national governments to invest in their people, and a greater sense of fairness in how we tax profits across the EU.
“It is therefore vital that this government, that has consistently portrayed itself as a transparency champion, should commit to – and be required to – match these standards post-Brexit. Here is an opportunity for the UK to demonstrate that it won’t engage in a race to the bottom on tax rates but will instead commit to ensuring tax justice. Indeed, CBCR should be a condition to any deal which allows the UK continued access to the internal market.”