Oxfam praises European Parliament over corporate tax transparency

International aid agency Oxfam says it warmly welcomes the European Parliament’s decision to vote in favor of legislation that obliges large companies across all sectors to publicly declare their earnings and taxes in locations they operate. The legislation is part of the vote on the Shareholder’s Rights Directive.

“By requiring multinational corporations to publicly reveal profits and taxes where they actually do business, the parliament is truly championing tax transparency,” said Oxfam International deputy director for advocacy and campaigns, Natalia Alonso, in a statement on Thursday.

“Holding companies accountable for their fair share of taxes owed to the right places sets the foundation for building a fairer tax system that will benefit citizens in Europe and beyond,” she went on.

The vote comes as the European Commission presented a plan on a fair corporate tax system in the European Union (EU) and a three-month public consultation on the benefits of country-by-country reporting on June 17. The latter is part of the impact assessment launched in March as part of the commission’s package to promote greater tax transparency in Europe.

Alonso said with this vote of confidence for corporate tax transparency, the European Parliament was signaling to EU governments that it was time to put an end to the privileges granted to large companies, which cost billions to citizens in Europe and developing countries.

“It is now up to the member states to deliver and through this restore European citizens’ trust,” she said.