The Maltese Presidency of the Council of the European Union, responsible for Ecofin dossiers, continued with its effort in combating tax erosion, evasion and profit shifting. In the sphere of Company Law, the Maltese Presidency has just published the last version of the Council text proposal that brings about a better balance in enhanced corporate governance, keeping tax erosion and evasion under control whilst also safeguarding the economic interests of European multinational entities.
Current President of Ecofin, Minister Edward Scicluna stated that 'Through the latest updates of the Country By Country Reporting dossier which involved an amendment to the Accounting Directive, the Maltese Presidency has continued with its effort in ensuring that the European Union retains its leadership in the development and promotion of best practices within the international community, whilst safeguarding the competitiveness of European Companies'
Country-by-country reporting differs from regular financial reporting in that companies have to publish information for every country they operate in rather than providing a single set of information at global level. Specific rules in the Accounting Directive require mining and forestry companies to use this system to report on the taxes, royalties and bonuses that they pay worldwide. The Commission has thus proposed a new directive which will require large multinational companies to publish country-by-country information on where they make their profits and where they pay tax.
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