15 out of 18 elements have already been implemented in the extended country-by-country reporting. However, 3 critical elements are still missing for the legislation to work as intended and prevent companies from avoiding tax. Background:
Norway has adopted a country-by-country reporting, which is aligned to the Dodd-Frank in the US and the Transparency Directive in the EU.
Such transparency of payments can reveal corruption.
But, today, the Extractive Industries can transfer significant profits out of the source country before it get taxed. That is why PWYP Norway has argued for, and to a large extends also succeeded in, getting extended requirements in place in Norway.
Tax payments taken out of its logical context will be of limited value.
Our policy proposal links tax payments to the audited financial statements through 8 simple accounting numbers.
This simple policy proposal, all aligned with US and EU regulations, will give investors and constituents the instrument to follow their money as it will show where the money ends up.
This Briefing is based on the Extended country-by-country report, please see full report 84 pages.