Definitions of reportable items

Article 89(1)(d) and (e) Directive 2013/36/EU (CRD) require the public disclosure of 'profit or loss before tax' and 'tax on profit or loss'. Recital 52 also explains that increased transparency regarding 'profits made [and] taxes paid' is essential for regaining the trust of citizens of the Union in the financial sector. Therefore, while recognising the need for reporting institutions to comply with the national requirements imposed by the Member States when transposing Article 89 into their national law, it seems that transparency and comparability are best served when institutions' disclosures include tax information separately on a cash basis (taxes paid) and on an accrued basis (taxes accounted for) which in the latter case would only include current tax expense and not include deferred taxes or provisions for uncertain tax liabilities. Where appropriate, institutions should explain any differences with the financial statements, in the interest of transparency and comparability. DISCLAIMER: This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General for Financial Stability, Financial services and Capital Markets Union) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.