EU to large firms honest tax

Google in Dublin HQImage copyrightGetty ImagesImage captionGoogle is one of the largest companies, required for the disclosure of tax information in accordance with the rules
Plans to make the largest companies to disclose more information about their tax affairs will be presented to the European Union on Tuesday.

British European Commissioner, Lord Hill, is set to introduce rules that will affect the international company with more than € 750m (£ 600m) in sales.

They will have to detail how much tax they pay and what the EU.

The plans come on the background of a thorough audit of the use of tax havens following revelations Panama documents.

transparency

Lord Hill, the EU financial services commissioner, said: "This is a well thought out, but ambitious proposal for greater transparency in tax.

"While our offer [from country to country reports], of course, is not primarily focused on the response to the Panama documents, there is an important connection between our ongoing work on tax transparency and tax havens, which we are building in the sentence."

Country-by-country reporting rules already apply to banks, mining and forestry enterprises, in accordance with EU spokesperson.

Under the new proposals, which will be expanded to cover companies which accounted for about 90% of corporate income in the EU, they added.

The BBC understands that companies will have to disclose information such as the total turnover, profit before tax, income tax payable, the amount of tax actually paid and accumulated profit.

The changes come after the G20 leaders agreed to follow OECD action plan to address the minimization of income taxes.