On the 5th of December the Norwegian Parliament voted for a new legislation on country-by-country reporting. These new regulations require Norwegian companies in the extractive and forestry industries to report some essential accounting figures, among others: their tax payments.
PWYP Norway has emphasized that there are several weaknesses in this legislation, which does not require disclosure of financial information from subsidiaries in tax havens, nor audited accounting figures.
Read the press statement from PWYP Norway.
The Norwegian parliament has however put pressure on the government, which is responsible for shaping the new legislation and making it operational. The parliament asks the government to ensure that the regulatory framework governing country-by-country reporting incorporates the objective of highlighting undesirable tax planning.
Norwegian civil society will in the upcoming months play a key role in holding the government accountable when shaping this legislation.
The new law on country-by-country reporting will also have great consequences outside the Norwegian borders. Many African countries that are regarded as poor, do in reality have an abundance of natural resources.
A greater degree of financial transparency will enable countries in the South to better detect the value of their natural resources and to identify companies that avoid taxation in developing countries by placing their profits in tax havens.
James Ninrew from South Sudan, Winnie Ngabiirwe from Uganda og Abena Afari from Ghana do wholeheartedly support the Norwegian initiative on implementing country-by-country reporting.
They were 3 of the 25 participants on a training course arranged by PWYP Norway in Oslo in November.
James, Winnie and Abena work against corruption and capital flight in their home countries, and provide clear recommendations to Norwegian politicians.