The report would include CbC financial filings for the information, including profits, taxes, employees, and tangible assets – that these corporations already provide to the IRS on an annual basis.
A new House Bill introduced by US Congresswoman Cynthia Axne seeks to mandate public country-by-country (CbC) reporting by large multinational enterprises (MNEs).
The Disclosure of Tax Havens and Offshoring Act would direct the US Securities and Exchange Commission (SEC) to mandate public disclosure of CbC financial reports by corporations with annual revenues over USD 850 million.
The report would include CbC financial filings for the information, including profits, taxes, employees, and tangible assets – that these corporations already provide to the IRS on an annual basis.
The Bill was introduced in the House by Axne, Jennifer Wexton, Stephen Lynch, and Lloyd Doggett.
The legislation has received support from the Institute for Taxation and Economy Policy, among others.
Axne said: “Iowa’s small businesses shouldn’t be put at a disadvantage to large multinational corporations. Shining a light on these practices will help investors and the public understand the risks that public corporations are taking to try and squeeze out extra profits.”
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable at editor@transferpricingnews.com