The objective of the study is to evaluate the adequacy of the information listed in points (a) to (f) of Article 89 (1) of the Capital Requirements Directive and of whether additional information could usefully be required under this Article, and to report its findings to the Commission.
Article 89(1) CRD IV aims to contribute to the exchange of comprehensive and relevant information on country-by-country reporting of credit institutions and investment firms. The Directive identifies the following general objective: to regain the trust of citizens in the financial sectors by increasing transparency regarding the activities of institutions. The country-by-country reporting for credit institutions and investment firms was not intended to be a tax measure28, unlike the country-by-country reporting for large multinational enterprises in the EU proposed by the European Commission in 2016.
Two specific objectives are targeted by this piece of legislation:
-To increase transparency regarding the activities of institutions, including profits made, taxes paid and subsidies received;
-To contribute to the corporate responsibility of institutions towards stakeholder and society.