American tech companies like Google, Facebook, and Amazon will be forced to disclose activities in tax havens through new legislation that the European Commission will introduce on April 12.
The legislation was recently amended in response to the Mossack Fonseca data leak, called the Panama Papers. One of the biggest leaks in history, the Panama Papers reveal how the rich and powerful, including world leaders, hide their wealth through offshore tax havens. The data reveals that 12 world leaders, 143 politicians, their families and close associates have been using offshore tax regimes.
The measure plans to make big companies show how much tax they pay and where, according to Reuters. Companies making over £600 million a year ($681 million) would be forced to reveal how much tax they paid in EU countries, while the rest of the world is viewed as a single item.
Officials said the draft of the new rule proposes that companies also list how much of their money outside the EU filters through any state that is determined by EU governments as a tax haven.