Tax Law 360: EU Should Use Tax Transparency For Public Bids, CICTAR Report Says

Written By Toby Quantrill
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Tax Law 360 covers the latest report from CICTAR, developed with the European Federation of Public Service Unions, EPSU.

“Aggressive tax avoidance should become a factor in public procurement by leveraging the existing obligations of large multinational companies to file country-by-country tax reports confidentially with tax authorities.”

“Smaller companies should have to submit their consolidated financial accounts so that authorities can calculate their global effective tax rate, along with documenting their ownership structure, according to the report.

Using this information, contracting authorities could exclude companies if key information is missing, if there is a significant discrepancy between local and global profitability or if the global effective tax rate falls below a benchmark, such as that of the state that launched the procurement,"

Toby Quantrill
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