SummaryStatoil reported on the minimum transparency requirement, called country-by-country reporting, on a half page in its sustainability report for 2014.PWYP Norway shows that Statoil could have easily reported on
a meaningful transparency requirement, called an extended country-by-country reporting, on that half page.When companies can show their country-by-country presence on a half page, why will politicians not demand it from them?
Summary:• Natural resources have the largest value creation potential to mobilize tax revenue, but profit often ends up elsewhere.• Today, the Extractive Industries can transfer significant profits out of the source country before it get taxed.• One simple policy proposal, aligned with US and EU regulation, will give investors and constituents the instrument to follow their money.• The proposal links taxpayments to the audited financial statements through 8 simple accounting numbers.
In January, a new legislation will be introduced in Norway that might prevent capital flight and ensure a greater degree of transparency. Three activists from the civil society in South Sudan, Uganda and Ghana explain why this law is vital for their work. See the video interview!
The “tax haven – section” contains the requirements for an extended country-by-country reporting, but is put in a Sleeping Beauty slumber. Photo: Christian_A_Calmeyer_(CC_BY-NC-ND_2.0_Flickr).
Would the Government like to know about mailbox companies and capital in tax havens? If so, they already have the key themselves.
Deloitte´s building in Oslo, Norway. Photo: Benson Kua (CC BY-SA 2.0/Flickr)
The Ministry of Finance has outsourced the evaluation of national transparency requirements to one of the "Big Four" accounting firms - Deloitte. PWYP Norway shares its consultative input with notes.
PWYP Norway has analysed and documented Statoil's reporting according to the current country-by-country reporting amendment for the three financial years the company has reported on - 2014, 2015, and 2016.
Statoil's tax director Finn Lexov stated that the company chose the Netherlands because of the favorable tax laws. The oil industry is calling it “stable and predictable", writes the Mona Thowsen. Photo: Kjell Eson, v/ Flickr: CC BY - NC - ND 2.0
Statoil and others should be forced to report on their mailbox empires. Or does the State prefer to get this sort of information through the news?
Norwegian Bank Investment Management (NBIM) asked PWYP Norway for feedback in an Expectations document on taxes and transparency.
Thick walls at the Ministry of Finance. Foto: Helge Høifødt
Right before Christmas Eve, on December 22, the Ministry of Finance established changes to the amendment concerning country-by-country reporting (CBCR), without Parliament having dealt with the matter.
The Ministry of Finance. Photo: Christian A. Calmeyer (CC BY-NC-ND 2.0)
PWYP Norway explains how the protection of tax havens can be repealed by removing a link between two paragraphs.