Country-by-country reporting edges closer to reality

A campaign to force companies to report their earnings country-by-country has been backed by a key European think tank.

The Guardian reports that the Organisation for Economic Co-operation and Development (OECD), will release guidelines aimed at encouraging companies to break down their earnings by country.

It’s hoped this will reveal the so-called corruption gap – the difference between how much companies pay in tax and how much is funnelled through to the local economy. The measures would also show-up how much companies pay governments of emerging economies in tax.

The International Accounting Standards Board has been debating whether to introduce the new standard for extractive industries.

However critics say country-by-country disclosures would be of limited benefit and would only add to lengthy disclosures in company reports.

Read the full story: OECD brings country-by-country tax reporting a step closer