Commission tax package: still shifting profits, not a real solution

A press release of Fabio De Masi

Jan 28th, 2016

The European Commission today published its anti-tax avoidance package containing several elements to fight base erosion and profit shifting (BEPS), exchange country-by-country reports between member state tax administrations and work towards a common EU position on tax havens.
GUE/NGL coordinator for the TAXE committee, Fabio De Masi, comments: "The European Commission cannot claim to lead the international fight against corporate tax dodging. This package will not make any real difference to the profit shifting business. On real transparency, there is nothing new as country-by-country reports (CBCR) are only exchanged behind closed doors. The public CBCR in the banking sector was key to the recent revelations about the tax dodging of UK investment banks."
"On the specific anti-BEPS measures, the proposals are also disappointing. The OECD recommended stricter interest limitation and controlled foreign company rules than the Commission proposes. In particular, the tax havens within the EU – which are some of the largest in the world – do not have to fear much repercussion as many rules do not apply on the internal market.
"In its anticipatory submission to the Council, the Commission does business as usual instead of proposing serious solutions to the broken system of corporate taxation. The Parliament must maximise public pressure by exposing those responsible for tax dumping, instead of making TAXE 2 a futile debating club of the Commission's proposals."
Portuguese MEP, Miguel Viegas, adds: "The fight against fraud and tax evasion has reached a new phase. In this new phase, we will see if all statements of the European Commission and the Council were sincere or if they consist merely of empty words intended to deceive the people once again."
"For our part, we will continue to confront the European institutions with their promises. We will also continue to mobilise public opinion to maintain the popular pressure to end this shameful situation in which the workers bear most of the tax burden while the large economic groups continue to not pay taxes with total impunity," Viegas concludes.
Read analysis of the Commission's proposals by Fabio De Masi

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