EU ministers discuss public CbC Reporting proposal

Mar 01, 2021

Last week the EU Member States’ internal market and industry minsters exchanged views on the proposed public Country-by-Country (CbC) Reporting directive.  The outcome of that meeting indicates that there is broad political support to move forward with the directive which proposes to mandate the public disclosure of tax payments in the EU by multinational enterprises with consolidated revenue of more than €750 million. 

The draft Directive, which was first proposed in 2016, has been subject to disagreement as to its legal basis. The disagreement centres on whether the proposal should be subject to the ordinary legislative procedure which requires qualified majority voting in the Council, or should it be treated as a tax matter subject to the special legislative procedure requiring unanimous approval at Council level. 

The meeting last week of EU ministers made clear that certain countries have changed their previous position and will now support the proposal and there now may be broad political support to move forward with the proposal. For a qualified majority to be obtained, a minimum of 15 (55 percent) Member States, representing at least 65 percent of the EU’s population must agree with the proposal. The exchange of views during the February 25 meeting indicates that these conditions could be met.

For more information read the update from the meeting and the proposal.