European Commission’s Anti Tax Avoidance Package will not stop multinationals dodging taxes
• Some proposals in package could even lead to lower taxation of multinational corporations
• Commission must now back public reporting of where companies make profits and where they pay taxes.
Thursday 28th January 2016
The European Commission’s much-feted Anti Tax Avoidance package lacks ambition and will not bring an end to the epidemic of multinational tax dodging.
Tove Ryding, tax justice coordinator at the European Network on Debt and Development (Eurodad) said: “This package is woefully inadequate to stem the tsunami of scandalous cases of multinational corporations failing to pay their taxes. The system needs real reform, not piecemeal solutions.
“A crucial first step to making a real difference would be for multinationals to publicly report where they make their profits and where they pay their taxes. Instead, the European Commission is presenting a package on how to introduce secret reporting that keeps parliamentarians, journalists and the general public in the dark
As well as making little progress on transparency, the proposal:
• Includes elements that could result in more harmful tax competition by rewarding EU Member States with low corporate tax levels.
• Allows companies to deduct high levels of internal interest payments from taxes they should be paying.
• Suggests that the EU continues to blacklist certain countries as ‘non-cooperative jurisdictions’, while protecting its own member states, several of which have become infamous as tax havens, from blacklisting.
• Does not solve the problems exposed in the #LuxLeaks scandal.
Eurodad now urges the European Commission to support the European Parliament’s proposal for public country by country reporting as part of the Shareholders Rights Directive.
Ryding added: “Commissioner Moscovici recently announced that this would be the year of corporate tax reform and fiscal transparency. Time for the Commission to take much more ambitious action and bring an end to multinational tax dodging.
is a more in-depth analysis of the package. It can also be found at www.eurodad.org/ECtaxpackage ENDSTo request an interview, or for more information, please contact Julia Ravenscroft, Communications Manager at Eurodad, on email@example.com or +32 2 893 0854.