Country-by-Country Reporting: How Restricted Access Exacerbates Global Inequalities in Taxing Rights
16 Pages Posted: 1 Apr 2017
Date Written: December 8, 2016
Fully public country-by-country reporting would enable a dramatic shift in the accountability of both multinationals and tax jurisdictions. Estimates of the losses due to tax avoidance imply that lower-income countries would benefit disproportionately, as this transparency would offer powerful leverage against the current, highly unequal global distribution of taxing rights over multinationals. The OECD’s welcome adoption of the Tax Justice Network’s original proposal is, however, critically undermined by the decision to impose multiple limits on access to the data. This paper explores these limits, and demonstrates how the resulting unequal access is likely to exacerbate, rather than ameliorate that inequality in taxing rights. A range of proposals is put forward for progressive steps by various actors, including multinationals themselves.
Keywords: country by country reporting, CBCR, automatic exchange of information, tax avoidance
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