{"id":13922,"date":"2019-08-09T13:52:30","date_gmt":"2019-08-09T23:52:30","guid":{"rendered":"https:\/\/sfwpartnersllc.com\/?p=13922"},"modified":"2019-08-09T13:52:30","modified_gmt":"2019-08-09T23:52:30","slug":"in-pursuit-of-global-tax-transparency","status":"publish","type":"post","link":"https:\/\/www.sfw.cpa\/news-and-guides\/in-pursuit-of-global-tax-transparency\/","title":{"rendered":"In Pursuit of Global Tax Transparency"},"content":{"rendered":"

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In today\u2019s global economy, multinational corporations engage in numerous cross-border transactions. But how they report those transactions is often vague. To help minimize stakeholders\u2019 exposure to potential hidden risks, the Financial Accountability & Corporate Transparency (FACT) Coalition wants multinationals to disclose more information about corporate taxes.<\/p>\n

A global movement<\/strong><\/p>\n

The FACT Coalition is a nonpartisan group of more than 100 state, national and international organizations working toward a fair global tax system and curbing corrupt financial practices. Its website reports that, until the passage of the Tax Cuts and Jobs Act (TCJA), the 500 largest U.S. companies had $2.6 trillion stashed offshore, costing taxpayers over $750 billion in unpaid taxes. But tax reform didn\u2019t completely stop the problem. Under the TCJA, offshore tax avoidance is expected to cost an additional $14 billion in lost tax revenue over the next decade.<\/p>\n

As of March 2019, the United States and 77 countries require multinationals to file country-by-country reports privately<\/em> to tax authorities, according to a standard set by the Organisation for Economic Co-operation and Development (OECD). But few countries require public<\/em> disclosures of such information, except by certain banks and oil, gas and mining companies.<\/p>\n

What inquiring minds want to know<\/strong><\/p>\n

The FACT Coalition recently issued a report titled Trending Toward Transparency: The Rise of Public Country-by-Country Reporting<\/em>. It urges Congress, the U.S. Securities and Exchange Commission (SEC) and the Financial Accounting Standards Board (FASB) to up the ante.<\/p>\n

Specifically, the FACT Coalition wants multinational corporations to publicly<\/em> disclose, on an annual, country-by-country basis:<\/p>\n

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The number of entities,<\/li>\n
The names of principal entities,<\/li>\n
Primary activities of these entities,<\/li>\n
The number of employees,<\/li>\n
Total revenues broken out by third-party sales and intragroup transactions of the tax jurisdiction and other tax jurisdictions,<\/li>\n
Profit\/loss before tax,<\/li>\n
Tangible assets other than cash and cash equivalents,<\/li>\n
Corporate tax paid on a cash basis,<\/li>\n
Corporate tax accrued on the profit or loss (including reasons for any discrepancies), and<\/li>\n
Significant tax incentives.<\/li>\n<\/ul>\n
The FACT Coalition believes that \u201cthese enhanced disclosures are essential for investors to effectively value and assess the risks related to the public companies in which they have invested.\u201d<\/p>\n
Transparent reporting<\/strong><\/p>\n
Some multinationals, such as Vodafone and Unilever, voluntarily provide country-by-country tax disclosures. Should your company report similar information? Companies that are upfront about their tax strategies may engender trust and goodwill with stakeholders.<\/p>\n
Contact us to discuss whether the benefits of expanded global tax disclosures outweigh the costs. We can help you collect this information and report it to your investors to a user friendly format.<\/p>\n
\u00a9 2019<\/em><\/p>\n
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In today\u2019s global economy, multinational corporations engage in numerous cross-border transactions. But how they report those transactions is often vague. To help minimize stakeholders\u2019 exposure to potential hidden risks, the Financial Accountability & Corporate Transparency (FACT) Coalition wants multinationals to disclose more information about corporate taxes. A global movement The FACT Coalition is a nonpartisan […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-13922","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/posts\/13922","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/comments?post=13922"}],"version-history":[{"count":0,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/posts\/13922\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/media?parent=13922"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/categories?post=13922"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/tags?post=13922"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}