The new amendment by the UK government will require multinationals to state how much tax they have paid and declare revenues country-by-country
The UK government has accepted a legal amendment that could force multinationals to declare where they do business and the tax they pay.
The move comes in the wake of the European Commission ruling requiring Apple to pay Ireland €13bn in back tax. This ruling is to be appealed by both Apple and the Irish Government.
In the UK, the move for greater transparency follows controversy over a deal between the UK government and Google to repay £130m in back taxes this year.
The proposals, drawn up by Labour MP Caroline Flint and supported by more than 60 MPs, would oblige the UK Revenue and Customs to release data on tax paid by multinationals.
Country-by-country reporting
The amendment was accepted by the UK government last night (5 September) and will also require multinationals to provide a country-by-country report that will show what revenues are earned in which nation, how much profits they made and how much tax they paid.
Fantastic news Govt accepts my Am 145 to enable the introduction of public country-by-country reporting. Thanks everyone. #showmethemoney
— Caroline Flint (@CarolineFlintMP) September 5, 2016
Flint’s motion was backed by several parliamentary groups that were members of the public accounts committee, including Conservative, Scottish National Party, Ulster Unionist Party, the UK Labour Party, Plaid Cymru and Liberal Democrat MPs.
Flint introduced the amendment back in March under the Ten Minute Rule, a private members bill that allows MPs to propose their own legislation.
Houses of Parliament image via Shutterstock
