"Big companies must be more transparent on the taxes they pay in each country," say S&D Euro MPs

Country by country reporting stamp

S&D Euro MP Sergio Cofferati today secured a majority in the European Parliament on a proposal to oblige listed companies to make public their activities and the taxes they pay in each country they operate.

The Parliament has introduced this measure in the revision of the Shareholders' Rights Directive. Today's vote opens the way for negotiations between the European Parliament, the Council of ministers and the European Commission.

S&D Euro MP and European Parliament’s negotiator, Sergio Cofferati, said:

"I am pleased that the European Parliament has approved the mandatory country-by-country tax reporting. We are sending a clear signal to the EU Council of ministers ahead of the negotiations. After the LuxLeaks scandal, it is high time that large companies pay their taxes where profits are generated.

"We have also strengthened transparency and controls on directors' remuneration and ensured that their pay is properly linked to their contribution to the long-term sustainability of the companies.

"It is important that shareholders have a 'say on pay' on remuneration policy. We want to ensure that the evaluation criteria for directors' pay are appropriate and comprehensive and take into consideration the financial and non-financial performance of the companies in the long-term."

S&D Group spokesperson on the legal affairs committee, Evelyn Regner added:

"The outcome of the vote is amazing. Introducing country-by-country reporting in the law is a major achievement for the Socialists and Democrats. It will create a positive impact in the fight against tax evasion and aggressive tax planning."

S&D Group spokesperson on the economic and monetary affairs committee, Elisa Ferreira stated:

"Europe has a real chance to create a fairer and more transparent tax system. If the proposal goes through it will be a major step forward in the fight against tax fraud and tax evasion."