Representatives of the European Parliament and the Council of the European Union are meeting on Tuesday 1 June for trilogue negotiations on the proposed directive to increase public country-by-country reporting (CBCR), which could be concluded.
“From our side, we are hopeful about the possibility of reaching an agreement”, Ibán García del Blanco (S&D, Spain), the European Parliament’s co-rapporteur on the text with Evelyn Regner (S&D, Austria), told EUROPE on Monday 31 May. He argued that the issue had been revived “six months” ago, thanks in particular to a change of position by countries such as Austria (see EUROPE 12666/8) and a proactive attitude by the Portuguese EU Council Presidency.
One of the controversial issues is the extent of tax transparency of accounting data for activities that EU companies with annual turnover exceeding €750 million carry out in third countries.
The revised mandate given to the Portuguese Presidency limits the breakdown of data to blacklisted third countries (non-cooperative jurisdictions for tax purposes currently comprising 12 countries) and to third countries on the ‘grey’ list of countries that have made certain commitments on tax transparency (currently nine countries) for more than 3 years (see EUROPE 12726/19).
Of these nine third countries, five have been on the ‘grey’ list for more than 3 years (Botswana, Jordan, the Maldives, Thailand, and Turkey).
Parliament initially advocated a breakdown of accounting data for activities in all third countries. But it has relented on this point, a parliamentary source said.
“We knew that it would be impossible to get everything. We are realistic and pragmatic”, said Mr García del Blanco, for whom Tuesday’s trilogue may be the last chance to reach an interinstitutional agreement under the Portuguese Presidency.
Slovenia, which will take over the reins of the EU Council from July until the end of the year, did not support the agreement by qualified majority of Member States.
The trilogue, which will start at 1:00 pm, was due to end at 7:00 pm, but—indicating that an agreement may be possible—negotiators have been warned that negotiations could continue until an agreement is finalised. (Original version in French by Mathieu Bion)