Agreement was reached at a meeting of Economic and Financial Affairs ministers on 8 March in Brussels on a directive for the automatic exchange of tax-related financial information of multinational companies. The directive will transpose the OECD recommendation on country-by-country reporting into a legally binding EU instrument. It will apply to multinationals with total consolidated group revenue of at least €750 million.

ECOFIN’s press release noted that “the United Kingdom strongly supported this stance pending consultation of its parliament”. Under the proposed directive, multinational groups will have to provide certain, tax-related information on an annual basis for each tax jurisdiction in which they do business. Member States will also be required to share the information with the other Member States concerned. The Commission will regularly receive the information it says it needs to monitor the implementation of the new rules and to ensure that Member States are complying with their responsibilities. Member States will have 12 months to transpose the new rules into national law after its entry into force, which is expected for spring 2016.

The Council will adopt the directive once the European Parliament has given its opinion and national parliamentary reservations have been lifted, and once the text is finalised in all languages.