UK bill to open details on multinational Tax Evasion

A legislative amendment in the United Kingdom this week will give the British government the power to publish details of tax payments made by UK-based multinational corporations on a country by country basis, as tax authorities try to clamp down on the abuse of tax laws and aggressive tax avoidance.

The change in the law followed cross-party calls for companies to publish the details of where they do their business and the tax they pay in each place, which came in response to the controversy surrounding a deal between the government of the UK and Google to repay GBP 130 million in back taxes earlier this year.

In August, the European Commission ruled that Ireland should recover up to EUR 13 billion from Apple in back taxes.

Director of the Financial Transparency Coalition described it as a welcome step but said it was important for the government to actually use the power it now has by releasing country by country reports of UK multinationals to the public as quickly as possible. He said: “It’s time to break out of perpetual scandal mode and make some changes to business as usual. A financial system that relies on plausible deniability and shifting responsibility is inherently shaky, and it’s simply not sustainable.”

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