December 12, 2016 at 8:23 pm
Totally off topic but followers of TRUK will be well aware of our Prof’s love of CBC reporting (and the fact he is undisputed creator of CBCR). Well, the French Constitutional Court (Conseil constitutionnel) has rules on 8 December 2016 that CBCR is incompatibility with the French constitution. Per IBFD “The Court ruled that such public CbC reporting disregards the business freedom (liberté d’entreprendre) in so far as it compels companies to disclose their business strategy. Although the fight against tax evasion and tax fraud is a constitutional value, the obligation to make public economic and fiscal data on a country-by-country basis will enable competitors operating in the same market to identify key elements of their industrial and commercial strategy, which disproportionally affects the freedom of a company as compared to the objective of the public CbC reporting. Therefore, the Constitutional Court declared that article 137 of the Law was unconstitutional and repealed this article from the Law (published in the Official Journal on 10 December 2016).”
And just for the jollies of it:
For all these reasons France has taken a logical step forward that will, I hope, see its way onto its statute book. And there is now no good reason why not: every major multinational corporation will now have to prepare country-by-country reporting data and there is no auditor on earth who could not now properly appraise and audit the risk in that report if they are to be sure that the tax charge in that entities accounts is truthfully and fairly stated for audit purposes. As such very soon the entire cost of publishing country-by-country reporting data will be the expenditure involved in uploading a PDF to the web.
The time for excuses on country-by-country reporting is over. The time for publication is now. If France if leading the way, good for it.
That was before the court ruled on it of course.