UK to crack down on tax-evading Multinational corporations

[marmar]

from the Guardian UK:



Multinationals to be forced to reveal tax bills
Britain is backing moves for country-by-country reporting to stem tax avoidance

Nick Mathiason, Jill Treanor and Phillip Inman
guardian.co.uk, Monday 15 June 2009


The UK is backing calls to force multi­national companies to reveal precisely how much tax they pay in each jurisdiction they operate in. The move is being hailed as a significant breakthrough towards ending tax secrecy.

Stephen Timms, the financial secretary to the Treasury, will tell G20 ministers gathering for a meeting in Berlin next week that country-by-country reporting should be introduced. At present, companies do not need to reveal what tax or profits they make in many countries.

The move, welcomed by non-­governmental organisations and campaigners for the developing world, will be strongly resisted by international mining firms, which for decades have negotiated secret deals that deny developing countries huge sums in lost revenue.

David McNair, senior economic adviser at Christian Aid, said: "We see country-by-country reporting as a key mechanism for developing countries so they have the information they need to identify companies that dodge tax and to ensure they have enough money to invest in health and education." ..............(more)

The complete piece is at: http://www.guardian.co.uk/business/2009/jun/15/uk-multinationals-tax-avoidance

[anonymous171]

1. Great news. nt

[Vidar]

2. Good for the UK. The US won't do anything but pamper them.

[muriel_volestrangler]

3. But, against that, we have:

'Light-touch' reforms raise fears of new bank disaster

Regulator proposes to end audits for subsidiaries

Proposals by the Financial Reporting Council, the regulator responsible for promoting confidence in corporate governance and reporting, have raised the possibility that the accounts of wholly owned subsidiaries of major banks need not be audited.

The plans appear to indicate that the financial community is intent on returning to the days of light-touch regulation. The City is also resisting demands to create a European financial regulator.

The FRC is asking the financial industry whether subsidiaries should be required to file audited accounts with full disclosures. "Is a more simplified reporting regime more appropriate? Would it be desirable to eliminate the UK requirement to prepare, have audited, and file wholly-owned subsidiary accounts in the case of a parent company guarantee?" it asks.

Critics point out that it was a subsidiary of Northern Rock, Granite, that contained the liabilities that led to the collapse of the bank: Granite owned £49bn of mortgages that were sold by Northern Rock and moved offshore to the tax haven of Jersey. Likewise, a series of banks crashed last year because their subsidiaries loaded up on asset-backed securities that plummeted in value.

http://www.guardian.co.uk/business/2009/jun/14/light-touch-banking-regulation-financial-crisis

[LeftishBrit]

4. Not before time!