Daily Tax Report: International

Global Tax Data Show Mismatch of Profits, Activity Locations (1)

July 8, 2020, 9:06 AMUpdated: July 8, 2020, 8:14 PM

Multinationals’ global tax reports appear to show a disconnect between where companies report their profits and where their economic activities arise—suggesting that channels for profit shifting exist, the OECD said.

Data released Wednesday from the Organization for Economic Cooperation and Development for the first time detail information from an aggregated pool of anonymized multinational companies’ country-by-country tax reports, highlighting the need for international changes to traditional tax systems, members of the EU Parliament told Bloomberg Tax.

Country-by-country reporting, introduced in 2016, is one of the OECD’s tools for increasing tax transparency and...

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