Public Country by Country Reporting proposed for EU Companies: There has been a recent proposal by the European Commission for the introduction of new legislation that would require public Country by Country Reporting from EU Corporations.
Public Country Reporting proposed EU Companies :Application
Public Country Reporting proposed EU Companies : The public reporting mentioned above has been proposed to apply to Corporate Groups that exceed the consolidated turnover of EUR 750 Million.The obligation, in the case of groups headquartered in the EU, ultimately falls on the parent Company which is in the EU. In the case of groups headquartered outside the EU, the reporting obligation falls on the subsidiaries of the parent company including branches that are based within the EU.The proposed reporting obligation seeks to cover all sectors and industries with the exception of financial organizations that already are under such reporting obligation.
Information to be reported
Public Country Reporting proposed EU Companies : The information as will be shown below must be clearly reported for company’s activities in every jurisdiction they operate and is as follows:
- The nature of the activities of the organization;
- Number of employees;
- Net turnover (including all companies related);
- Profits and losses prior to tax;
- Income tax accrued for the year in question;
- Amount of accumulated earnings;
The report shall be published on the organization’s website and be also recorded in the business register.The administration, management and supervision body of the organizations is to be responsible for the disclosure of such information, which is confirmed by the auditors of the company after publication. The reporting obligation, should it be breached will bring penalty sanctions to the company in question and its related parties.
Implementation
The said proposal is yet to be approved by the EU Parliament and the Council. Once done, it will be adopted into national laws of the member states within one year from its entry into force.
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