The European Union will on Tuesday reveal a plan that will force big companies to be more open about their tax affairs.
Lord Hill, Britain’s EU Commissioner, will present the rules that will affect multinational firms that have over 750m euro sales.
They will be needed to provide details regarding the amount of tax they pay and in which EU countries.
The plans are coming at a time when questions have been raised concerning how tax havens are used after the Panama Papers revelations.
Lord Hill, the EU’s financial services commissioner, said: “This is a carefully thought through but ambitious proposal for more transparency on tax.
“While our proposal on [country-by-country reporting] is not of course focused principally on the response to the Panama Papers, there is an important connection between our continuing work on tax transparency and tax havens that we are building into the proposal.”
Some of the sectors that are already affected by the country-by-country reporting rules are banks, mining and forestry companies.
Among the details contained in the new rules is that companies which account for close to 90% corporate revenues in EU will be affected too.
As per BBC, companies will be needed to avail information such as profit before tax, total net turnover, accumulated earnings and the actual amount of tax paid.
The rules are being implemented after G20 leaders came up with the OECD plan that will tackle corporate tax minimization.