Eleven years ago, the U.K. Labour Party issued a controversial proposal: Large multinationals should publicly report their profits and taxes in the countries where they do business.
The article from Forbes discusses the implementation of public country-by-country (CbC) tax reporting in the United Kingdom, which is set to begin in 2024. This new regulation requires multinational enterprises (MNEs) with a global turnover exceeding €750 million to publicly disclose their tax-related information on a country-by-country basis. The aim is to enhance transparency, combat tax avoidance, and provide stakeholders with insights into where profits are made and taxes are paid. The UK's move aligns with similar initiatives in the European Union and other jurisdictions, reflecting a global trend towards greater corporate tax transparency. The article highlights the potential benefits, such as increased accountability and public trust, but also notes concerns from businesses about the administrative burden and potential competitive disadvantages. It also mentions the ongoing debate about the balance between transparency and the protection of commercially sensitive information.
