EU agrees country-by-country reporting for extractive industries

EU agrees country-by-country reporting for extractive industries

European companies required to disclose full information on payments of more than €100,000 (£85,000) to governments in resource rich countries

LARGE EXTRACTIVE COMPANIES will be forced to shed light on their dealings with national governments on a country-by-country basis, under new laws agreed in Brussels earlier this week.

Following the deal between the European parliament and commission, European companies will be required to disclose full information on payments of more than €100,000 (£85,000) to governments in resource rich countries.

The proposals, agreed as part of revisions to the EU’s accounting directive, means companies dealing with oil, gas, minerals and logging from primary forests will payments such as taxes on profits, royalties, and licence fees on a country and project basis.

Michel Barnier [pictured], the European commissioner for internal markets, said the agreement would show how EU legislation “can be a catalyst for change in developing countries”.

“The agreement will bring in a new era transparency to an industry which if far too often shrouded in secrecy and help fight tax evasion and corruption as well as create the framework so both companies and governments can be held to account on the use of revenues from natural resources,” Barnier said.

The accounting directive agreement also included new, simpler financial reporting requirements for SMEs, such as an exemption from preparing consolidated financial statements for small groups.

“This will result in a reduction in the administrative burden for small companies. SMEs are the backbone of the real economy and we must continue to make it easier for them to inject the dynamism our economy so desperately needs,” Barnier said.

 

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource