Sir, – That the introduction of a country by country reporting standard on tax for multinational companies is a potential game-changer is correct ("Tax proposals for multinationals will have 'massive impact'", June 8th). But to claim, as OECD head of tax policy Pascal Saint Amans does, that the views of developing countries are reflected in the latest OECD proposals is disingenuous.
In a move to promote greater transparency, the OECD agreed to introduce a country by country reporting standard for multinational companies. This will require them to report on their activities in each of the jurisdictions in which they operate. This would provide valuable data in helping to identify possible instances of aggressive tax avoidance, evasion or corruption. It would also allow investors to make more informed decisions as to the risk associated with particular companies based on analysing their activities globally.
However, for developing countries it will be almost impossible to benefit from these proposals. The OECD intends that the data be shared first with the host country of the parent company, and disbursed then only on the basis of existing bilateral tax agreements or other bureaucratic mechanisms with other countries. However, most developing countries do not have these kinds of arrangements in place with the countries in which the companies are likely to be headquartered, making it impossible for them to access the information.
Given its membership, that the OECD is failing to address the concerns of developing countries is not surprising. An intergovernmental body on tax under the auspices of the UN would be a far more democratic and sensible place for decisions on global taxation to be made. – Yours, etc,
SORLEY McCAUGHEY,
Head of Advocacy
and Policy,
Christian Aid Ireland,
Canal House,
Canal Road, Dublin 6.