Molly Scott Cato has said that support by MEPs for a Greens proposal on strengthening corporate tax transparency is exactly the sort of action that is needed to tackle the ‘scourge’ of tax avoidance. MEPs voted today for the introduction of country-by-country reporting for corporations as part of proposals for shareholder rights law. This is something Greens have fought hard to achieve, both in the economics committee, where Molly Scott Cato was responsible for the legislation, and in the legal affairs committee where today it was agreed. Responding to the news, Molly Scott Cato, who has special responsibility for tax affairs and tax justice said:
“Today’s vote is a major step forward. MEPs have voted on Green proposals originally put forward by myself in the economics committee, and it is now clear that the European Parliament has taken the lead where the European Commission has failed to act. Ensuring country-by-country reporting obligations for all corporations would strengthen transparency of corporations’ balance sheets and is crucial to tackling corporate tax avoidance and dumping.
“The onus is now on Commission president Juncker and EU governments to show they are serious about finally clamping down on corporate tax avoidance. I hope today’s Parliament vote is reflected in the final legislation agreed between EU governments and the European Parliament.”