The European Union is ready to go ahead with a new law to force multinational companies to disclose their tax payments and activities to each member state, as the number of supporters of the move has exceeded opposition from a group of countries led by the Republic.
Many member states, including the Republic, Luxembourg, Hungary and Sweden, have opposed the proposal, saying that the proposal to submit separate reports to companies with a turnover of more than $ 750 million per country has been suspended since 2016.
Portugal put forward the proposal as a priority for the European Union’s six-month rotating presidency, revealing that the paralyzed majority does not exist and called for a public debate on the matter on Thursday.
Portugal’s finance minister, Pedro Cisa Vieira, has announced that “the majority of member states” now support the law and will continue to finalize it with the European Parliament.
During the discussion, the Irish government opposed the move, arguing that the law and the path chosen for approval were not legally correct.
“We believe that tax expertise should take advantage of this measure to ensure compliance with current standards, and most importantly, international cooperation and communication agreements based on confidentiality,” said Robert Troy, Secretary of State for Corporate Regulation.
“As with all laws, it is imperative that specific guidelines be developed on an appropriate legal basis to ensure that they are legally strong and secure against any future challenges, so that the common goals against transparency and good governance can be comprehensively achieved.”
Ireland, along with other member states, opposes the move, saying it is a financial move that should be based on various laws and should be handled by finance ministers – a path that requires the unanimous support of the majority, and Ireland’s veto.
The option to approve the move by the European Union’s trade ministers and corporations instead of finance ministers means that only a legally qualified majority is needed to pass it, it said in a statement on Thursday.
Several member states spoke out in favor of it on Thursday, describing it as an important step against the aggressive tax planning of multinational corporations in Denmark and hailed by many countries as a reasonable compromise.
Advocates of the law argue that its legal basis should not be compromised as it does not affect the coordination of corporate reporting in the European Union and the tax rates levied by member states.
Irish Commissioner Mariard McGuinness justified the proposal in a discussion on behalf of the European Commission as head of financial services, noting that the executive believes the move is strong and that the European Parliament is in a similar position.
The proposal does not in any way seek to change the economic laws applicable to companies or to impose tax laws in the European Union or at the national level, ”Ms McGinnon said. I welcome public opinion on the need for transparency in this regard.
Troy’s warning that the law could pose “future challenges” raises the possibility of a future European Court of Justice opposition to the move.
Prior to the discussion, Christian Aid welcomed the development, urging the state to abandon opposition to the move, along with a group of charities.
“Today is a historic moment in the fight against tax evasion by multinational corporations,” said Sorly McCoy, head of policy and defense. “Opposition to Ireland has not changed in the end, as the majority of the European Union supports transparency.”
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