Saturday, October 1, 2016

New Bill Against Offshore Tax Avoidance

On September 22, Rep. Mark Pocan (WI-D) introduced the Corporate Transparency and Accountability Act, a bill which would require country-by-country reporting (CBCR) for all publicly-traded multinational companies. The OECD insists that mandatory CBCR is crucial in fighting corporate shifting of profits overseas.

Earlier this year, the Internal Revenue Service implemented rules to enact CBCR which would require U.S. parent companies with least $850 million in annual revenue to report to IRS information on profits, tax rates, and subsidies received in every country in which they operate. The Corporate Transparency and Accountability Act is different in that it would require this financial information to be available to public.

The bill is an attempt to add transparency to financial regulations that allowed multinational corporations to amass $2.4 trillion offshore to avoid paying hundreds of billions in taxes.