The European Commission has published a consultation on the potential economic consequences of country-by-country reporting under the CRD IV Directive (CRD IV).
Article 89 of the CRD IV requires firms to disclose on a country-by-country basis key specified information relating to their businesses. The drafting distinguishes between certain general information listed at article 89(1)(a) to (c) such as names, nature of activities and geographical location, turnover and employee numbers and potentially more sensitive information listed at article 89(1)(d) to (f) such as profit on loss before tax, tax on profit and loss and public subsidies received. The obligation to disclose the article 89(1)(d) to (f) information applies from 1 January 2015, while the disclosure obligation for article 89(1)(a) to (c) applied from 1 July 2014.
Article 89(3) requires the Commission to report to the European Parliament and the Council of the EU by 31 December 2014 on the potential negative consequences of the public disclosure of country-by-country reporting information. If it identifies significant negative consequences, the Commission will consider making a legislative proposal amending article 89 and it may defer the obligation to disclose the article 89(1)(d) to (f) information.
The deadline for responding to the consultation is 12 September 2014.