To what extent do companies report on their tax payments?
Only a small minority of listed companies report comprehensively on their tax payments, providing a country-by-country breakdown and information on their number of employees, operational activities, turnover and profits. Furthermore only a small number justify their physical presence or the presence of their assets in tax havens or offshore centers.
A February 2017 Vigeo Eiris study analysing 1,139 multinational companies revealed that...
- Banks, financial institutions and extractive companies are also subject to the most controversies...[including] tax avoidance...
- The cost of aggressive tax planning practices is estimated to be between at least USD 70 billion and USD 120 billion per year in developing countries, around USD 135 million per year in the USA, and between EUR 50 to 70 million per year in the European Union ...
Taking recent legislative developments into account – alongside public opinion after the numerous scandals linked to tax avoidance abuse, tax havens and a lack of transparency around business activity, profit and tax payment - companies are expected to provide, by country or area of activity, detailed information on their tax payment and their operational activities...