The European Commission has ramped up its crackdown on corporate tax evasion by coming up with a plan which requires all 28 member countries to share details of tax rulings they grant to multinational companies.
Under the plan, national tax authorities would have to file quarterly reports detailing all tax rulings they have issued to large cross-border companies as well as highlight which countries could be impacted by the decision.
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The proposal says that no country can refuse any information on grounds of commercial secrecy or public policy.
A member state would also be allowed to demand fuller explanation about any suspicious ruling.
European Commission vice-president Valdis Dombrovskis said, "Everyone has to pay their fair share of tax. This applies to multinationals as to everyone else. With today’s proposal on the automatic exchange of information, tax authorities would be able to better identify loopholes or duplication of tax between member states."
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By GlobalData
