The European Commission has launched a
consultation on the desirability of country-by-country reporting by
multi national companies.

The consultation comes after calls were been
made to impose additional transparency requirements on large
companies operating in third countries.

Country-by-country reporting is intended to
resolve the issue of companies shifting profits into countries
where taxes are low and prevent them from exaggerating costs in
developing countries.

The consultation period is open until 22
December 2010.


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