The Ambassadors of the Member States to the European Union (Coreper) gave a revised mandate to the Portuguese Presidency of the Council of the EU on Wednesday 26 May: this comes within the negotiating box with the European Parliament over the proposed directive to increase public country-by-country reporting (CBCR).
According to this revised mandate – which was agreed by a qualified majority of Member States and detailed and published by us on Tuesday (see EUROPE 12726/19) – an obligation of accounting data disaggregation would apply to the activities of relevant companies (European companies or subsidiaries of foreign groups with an annual turnover of over EUR 750 million) carried out with third countries on the EU black list of non-cooperative jurisdictions for tax purposes, and with third countries that have been on the ‘grey’ list of jurisdictions who have committed to tax cooperation for three consecutive years.
The EU Council’s position initially only provided for a disaggregation of accounting data for those activities carried out in third countries on the EU blacklist. By way of contrast, the position advocated by the European Parliament requires there to be a disaggregation of accounting data for all activities undertaken outside the EU. However, according to the Portuguese Presidency, MEPs have recognised the need to find a compromise on this issue during the first interinstitutional negotiation sessions.
European Parliament and EU Council negotiators will meet in trilogue on Tuesday 1 June and according to an EU source, there is a “good chance” of reaching an interinstitutional agreement on that occasion. (Original version in French by Mathieu Bion)