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European Commission plans to make companies reveal tax haven activities

Originally the plan was for big companies to reveal how much tax they pay and where. Credit: PA

The European Commission will respond to the Panama Papers leaks on Tuesday by amending proposed new rules on tax havens.

Under the latest proposals, companies will be forced to disclose their activities in so-called tax havens.

Originally the plan was for big companies to reveal how much tax they pay and where.

Multinationals would disclose how much they paid in each EU state, with the rest of the world treated as a single item.

However the newest proposals have failed to convince everybody, with some campaigners describing them as toothless, owing to the lack of a common view between EU states as to what constitutes a tax haven.