Derek Nolan (Galway West, Labour)
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Question 262: To ask the Minister for Enterprise, Trade and Innovation the position regarding recent international developments in support of introducing an international accounting standard requiring multinational companies to provide tax reports on their activities on a country basis; if he supports such moves; and if he will make a statement on the matter. [9211/11]

Richard Bruton (Dublin North Central, Fine Gael)
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Financial reporting by multinational companies is being considered in a variety of forums including the OECD, at EU Council and Commission levels, by the International Accounting Standards Board (IASB), and in the US. Section 1504 of the 2010, US Dodd-Frank Act requires all extractive companies (e.g., minerals, oil, or natural gas) listed on US stock exchanges to publish payments made to governments on a country-by-country basis.

In the EU, the Council conclusions of 14 June 2010 encouraged the EU and its Member States to work towards exploring country- by country reporting as a standard for multinational corporations, by encouraging the OECD to pursue its work on country-by-country reporting, including as regards the OECD Guidelines for Multinational Enterprises and its Principles for Corporate Governance. It also concluded that Member States should also support the work of the IASB consultation on a country-by-country reporting requirement in International Financial Reporting Standard 6 "IFRS 6" for the extractive Sector, and encourage the IASB to look beyond the extractive sector. It is understood that the Board is still deliberating on these matters.

Earlier this year, the European Commission conducted a public consultation on country-by-country reporting by EU/EEA multinational companies in relation to the disclosure of financial information on their operations in third countries (i.e. non-EU/EEA countries). In this connection it is interesting to note that the Commission also made a distinction between general country-by-country reporting by multinational companies and specific transparency obligations in respect of payments to third country governments by companies active in the extractive industries.

My officials, in consultation, as appropriate, with colleagues from other relevant Departments, will actively participate in any EU proposals brought forward in these areas that fall within my Department's remit.