Adur, West & East Worthing Party including East Arun

Regulating the financial system accross the EU

Sharon Bowles MEP for South-East England and Chair of the European Parliaments Economic and Monetary Affairs (ECON) committee has been campaigning for a better Transparency and Accounting Directives

In a nutshell the proposed Directives (Transparency and Accounting) seek to improve transparency in financial reports from multinational companies making it a requirement for companies to publish in full any payments made to governments for each single country they operate in, also known as Country-by-Country Reporting.

Sharon’s ‘Own Up Pay Up’ campaign is raising awareness over the extent to which poorer countries are being cheated out of taxed owed to them, which equates to approximately twice the amount they receive in international aid. Sharon’s comprehensive amendments will allow the citizens of these countries to track the tax and hold those accountable.

Sharon’s amendments have been tabled and will be voted on in the ECON committee in the coming weeks and in Legal Affairs Committee in September.

A summary of Sharon’s Amendments:

Sharon amended the proposed texts so that all industries, not just extractive as the proposal originally called for, should be required to disclose payments to governments within financial statements in annual reports.

Sharon emphasised that all disclosures should be made on a country-by-country and project-by-project basis, whereby a project is defined as a contract, lease, license, or legal undertaking in which revenue is raised and payments for such activities are issued.

Within the types of payments that shall be reported Sharon included further requirements on information for;
Profit before tax
Taxes on profits and the effective tax rates applied
Quantities produced
Total number of people employed
Employees aggregate remuneration
Expenditure on fixed asset investment