The European Parliament's Economic and Monetary Affairs Committee has today voted through amendments to the EU's Transparency and Accounting Directives, making it harder for big multinational companies to hide profits made in the developing world.
Currently, multinational companies only need to submit one set of consolidated accounts despite often having hundreds of subsidiaries - this has allowed some multinationals to hide details of their business activities abroad and also avoid paying taxes to host countries.
After much political negotiation, the ECON committee voted for all sectors to disclose payments to host governments on a country-by-country and project-by-project basis, reports of which will be fully audited.
Speaking from Brussels today, committee chair, Sharon Bowles MEP, said:
"Multinationals can no longer get away with opacity. New rules on country-by-country and project-by-project reporting will shine a light on the darkest corners of corporate activity in the developing world to the benefit of civil society.
"I have pushed for the two proposals to cover all industries, with all of the extra disclosures to be fully audited - thereby ensuring binding legality. I am very pleased that my committee has today voted for the same."
© Sharon Bowles
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