Ireland is among 31 OECD countries that have signed up to the Multilateral Competent Authority Agreement designed to tackle tax avoidance and evasion by multinationals.

The move follows concerns about how some multinationals move their profits to countries with lower corporation tax rates.

It means these multinationals must now pay tax in the country where the profits are made and they will have to disclose their earnings from each jurisdiction and share it.

The development comes at a time of new transfer pricing reporting standards by the OECD’s Action Plan on Base Erosion and Profit Sharing.

Article source: Irish Independent