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A new era of corporate transparency is under way

The program of Taxes on G7 finance ministers it is part of the road to global taxation. If we are here, it is because of the pressure of the citizens who have realized that the current system has been broken. That’s why this week’s move by the EU is forcing major institutions to destroying their national and international interests is as important as the G7 alliance.

The good news is that global reports will also reach some of the largest companies operating in the EU. Bloc is already needed manufacturing companies (as in the US) and banks. This is acceptable and long-term.

The bad news is that the new rules are full of holes so they are embarrassing. The € 750m limit received for the required explanation is very high; and companies are given more freedom not to circumvent these laws by claiming commercial involvement. At worst, companies only need to break profits and taxes with EU member states as well as low tax rates – calling for regulatory arbitrage to incorporate profits into unlicensed international systems.

Some followers argue that it is not necessary to tell others what the taxpayer knows in private. But the way the G7 agreement reflects the transparency of questionable taxes has aroused interest in political reform international taxes, proper tax regulators and take action against violence.

What about the claim that transparency makes European companies less competitive, perhaps because they lose access to business if dividends are known publicly? Leaving aside the unjustified notion that European companies should seek opportunities to keep their customers in the dark to avoid harm, there are there is no evidence that this has happened while international reports have already been put into effect.

I find these points to be poor and I just think they were made wrong. In some cases, they may indicate that they want to continue playing with the wrong game. For the most part, they just try to defend the deep-rooted notion that one’s business is not everyone’s business – especially the general public.

But the time has come for this global outlook, due to the dramatic changes that improve the visibility of taxes are a small part. We are experiencing a dramatic change in the expectations of democracy.

Corporate profits and taxes are not the only example. Climate change allows companies to collect and disseminate information on climate change and climate change.

Until recently, such a search was limited to investors who had special reasons to care – such as a Norwegian fund, which is responsible for selling carefully. Now Spending money based on seasonal planning has advanced – with governments and financial institutions competing for who will define the measurement measures. The fact that the G7 finance ministers also favors the disclosure of acceptable climate.

For example, countries are starting to make companies to comment human rights in their work, and widespread EU law is imminent. Everywhere you look today, the tide of protectionist sentiment is flowing.

And how is that possible? The digital revolution has made it easier for information to find, share, and organize: just look at public action and Covid-19 epidemic information. This undoubtedly raises the hopes that if the information necessary for public access, it should not be kept secret. Citizens are learning that corporate organizations keep what they write; will want to know more about the companies they are doing. And anything one would think of an illegal exit, from WikiLeaks and Snowden’s secret public disclosure to public tax evasion, exposes the absurdity of the idea that many corporate events could be stolen publicly.

The time is fast approaching when much of what may be known, will be revealed. Courageous organizations need to plan for the future. This means dividing narrow sections, such as personal privacy and the real secrets of companies and governments, where confidentiality is required and allowing, even embracing, that information does not fall within the category. Successful companies are in a position to do business in the open and in the dark.

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