country-by-country tax transparency

Country-by-country (CbC) tax transparency sheds light on the global tax practices of multinational corporations (MNCs). MNCs report financial data for each country they operate in, revealing details like profits, taxes paid, and employee numbers. This transparency aims to: - Reduce tax avoidance: By exposing profit shifting strategies, CbC helps ensure MNCs pay taxes where they’re truly earned, potentially generating more tax revenue for countries. - Improve public accountability: Citizens can see how much tax revenue MNCs contribute to their countries, fostering better understanding of corporate tax practices. - Inform tax policy: Data from CbC reports can guide governments in crafting fairer and more effective tax laws, potentially leveling the playing field for domestic businesses.