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EC mulls forcing Google, others to reveal EU tax affairs

The European Commission has proposed legislation that willforce tech companies like Alphabet Inc.-owned Google Inc., Inc. and Facebook Inc. to open up their tax affairs across theEU, The Independent reported April 12.

The draft law would require businesses earning more than £600million annually to disclose their profits and accounts in every EU countrywhere they operate. The legislation was reportedly sparked by agrowing clamor across the EU to force multinational firms to pay fair taxes.

Amazon is facing an EU investigation for its tax practices across Europe. Thee-commerce giant is also being probed in Italy forallegations of tax evasion.

Meanwhile, Google is under fire for its affairs in France andIreland. It earlier reached a tax settlement in the

Following the so-called Panama Papers scandal, newprovisions have reportedly been added in the legislation to require thecompanies to reveal how much money they make in offshore tax havens, as well astheir profits in the rest of the world.

However, tax campaigners blasted the draft law for itspotential lack of effectiveness. Business groups, meanwhile, warned that thelegislation could result in the target companies leaving Europe altogether.

In addition, EU member states could not reconcile their viewon what constitutes a tax haven, according to the report.