TAX2 final report: Work in progress

A press release of Fabio De Masi

Jun 21st, 2016

The European Parliament’s special committee on tax rulings and other measures similar in nature or effect (TAX2), which has been set up following pressure by the Left and Green groups in the aftermath of the Luxembourg Leaks, will vote on its final report tonight. GUE/NGL coordinator Fabio De Masi comments:
“The report incorporates many of our key demands. In addition to tax transparency, the EP finally calls for specific and robust measures against tax havens and tax avoiders as well as their assistants in the banking and legal industry. This includes necessary source taxation and sanctions for both corporates, including the possibility to revoke licences in cases of repeated assistance to tax evasion, and tax havens. There are also strong calls on the protection of whistleblowers and, finally, a consistent rebuttal of harmful patent boxes.”
De Masi continues: “Unfortunately, the large political groups still shy away from naming those politically responsible for the tax cartel in the EU. We have painstakingly compiled information on Member States’ obstruction in the Code of Conduct Group, but some elements are still missing due to the delay tactics of Commission and Member States. We continue to pursue our law suit at the Court of the European Union on this. Also a further inquiry in the role of Commission President Juncker and other prominent figures was clearly blocked.”
De Masi concludes: “Besides punitive measures, we urgently need robust defence measures against tax dodging such as limitations on interest and royalty costs as well as strong rules on controlled foreign companies. The Council agreement on the anti-BEPS directive is scandalously weak. Each Member State got their own candy exemption. Last in the line was Belgium that was allowed to keep its harmful notional interest deduction scheme last minute. In order to end tax dumping and have corporates pay their fair share, we urgently need measures to ensure taxation according to economic substance - such as a fully-fledged CCCTB on a broad base - as well as tax rate floors to stop the current race-to-the-bottom.”