Brussels, 05/03/2015 (Agence Europe) - The Greens/EFA group at the European Parliament has failed to obtain guarantees from the Commissioner for Taxation, Pierre Moscovici, on a forthcoming proposal regarding country-by-country reporting for multinational companies. At the same time, MEDEF (the French employers' association) shared its concerns with the MEPs.
At a meeting with the co-president of the Greens/EFA group at the EP, Philippe Lamberts, on Wednesday 4 March, Commissioner Pierre Moscovici was unable to give assurances as to whether a proposal on country-by-country reporting would be presented in June. Although he supports the idea, this dossier would not in any case come under his remit, as it would be a matter for the Commissioner for Financial Services, Jonathan Hill, and the Commissioner for Justice and Consumer Rights, Vera Jourova. His two colleagues are believed to be in favour in principle, but the question is how to approach the matter. An impact assessment has to be carried out. At the moment, the College of Commissioners has yet to discuss the matter, and some of their number are believed to be not overly keen to do so. However, if the Commission does decide to make a proposal to this effect, it will make sure that it is well balanced.
The Greens/EFA group does not intend to wait for the Commission's initiative. It has tabled amendments to the 'shareholders' rights' directive to extend the transparency obligations laid down under CRDIV (turnover, number of full-time employees, pre-tax results, tax and public subsidies) to large enterprises.
MEDEF has put its comments to the MEPs in writing, arguing that no European initiative in this area should be “considered until the governments have implemented the OECD's recommendations”, or there would be the risk that non-compliant requirements are adopted, “which could harm the competitiveness and attractiveness of European businesses”. MEDEF goes on to point out that the OECD's recommendations provide for a more limited scope of application than the amendments of the Greens, but also the confidentiality of the information submitted to the competent authorities.
MEDEF also points out that the revision clause of the 'accounting standards' directive provides for an examination of the introduction of a country-by-country reporting mechanism in 2018; “it is too early to adopt a mechanism of this kind now”, the organisation argues.
It is also worth noting that during his meeting with Lamberts, Moscovici is reported not to have ruled out the possibility of a third 'taxation' package, taking account of the results of the special committee on the tax rulings, which has been set in place at the EP. However, it is still very much a possibility rather than a likelihood at this stage. (Elodie Lamer)