On 21 June 2024, the Network of Unions for Tax Justice (NUTJ) held its sixth meeting, focusing on public Country-by-Country Reporting (pCbCr) regulations in Australia and the European Union coming into effect this year. These new rules mandate that multinational corporations disclose detailed financial information on a country-by-country basis. This move is set to enhance transparency in corporate tax practices and empower unions to scrutinise and challenge tax avoidance strategies more effectively. 

Jason Ward, Principal Analyst at the Centre for International Corporate Tax Accountability and Research (CICTAR), provided an in-depth overview of the pCbCr regulations. He explained how these regulations require multinational companies to report detailed financial data by country, revealing the geographical distribution of profits and economic activities. This increased transparency enables unions to better understand where profits are generated versus where they are reported, offering a clearer picture of corporate tax practices. 

Ward highlighted how pCbCr can be a powerful tool for unions. By offering insights into corporate profit shifting and tax avoidance, unions can use this data to detect and challenge unfair corporate practices. Analysing pCbCr data can help unions identify anomalies, such as disproportionate profits reported in low-tax jurisdictions with minimal economic activity or significant related-party transactions, which are common signs of profit shifting. 

Looking ahead 

PSI and NUTJ have developed a guide to assist members in identifying red flags of profit shifting in companies. Unions are encouraged to explore these materials to scrutinise corporate tax practices within their sectors. This resource is designed to empower unions with the knowledge to detect and challenge unfair tax strategies effectively. 

Séverine Picard of NUTJ (spicard@progressivepolicies.eu) , invited members to get in touch to organise customised training sessions on identifying profit shifting indicators. This tailored training can significantly enhance the ability of unions to utilise this data for better campaigning and collective bargaining outcomes. 

Members are encouraged to visit the private NUTJ member section to access detailed briefing documents and the full minutes from the 21 June meeting. These documents offer deeper insights into the discussions and provide practical tools and resources shared during the meeting.