A new investigation into the financial secrets of Luxembourg has uncovered a web of offshore companies managing assets worth at least 6 trillion euros.

The latest revelations followed a year of investigation by a group of journalists, initiated by Le Monde, in collaboration with the Organized Crime and Corruption Reporting Project, Miami Herald and Suddeutche Zietung.

Tove Maria Ryding Tax Justice Coordinator at the European Network on Debt and Development (Eurodad) said:

"The OpenLux investigation shows us two things. Firstly, transparency works. The EU has decided to introduce public registers showing the real owners of the companies that operate in our societies, and that is a key reason why the journalists could carry out this investigation. Secondly, it shows that we have a long way to go before the EU can declare itself free of tax havens.

"The #OpenLux investigation indicates that multinational corporations and wealthy elites are still using Luxembourg to set themselves up to dodge taxes and disguise their activities. The investigation also shows that the transparency we have is still undermined by loopholes and insufficient checks and controls. #OpenLux is a stark reminder that we need tougher measures to ensure transparency and stop tax dodging through European tax havens.

"International tax avoidance and evasion is still costing countries around the world hundreds of billions of Euros in lost tax income every year – money which could have been used to fund public services including healthcare and education. The #OpenLux investigation is a reminder that this problem is not resolved – not globally, and not within the EU – and therefore we need more action on all fronts. In light of the Covid-19 crisis, this has never been more urgent.

"There are some very concrete proposals on the table now, which can make this situation better. At the EU level, there is a very important ongoing discussion about whether citizens should be allowed to know where multinational corporations are doing business, and how much tax they pay in each country where they operate. This would be a very important step forward. At the global level, there is an important discussion about whether to establish an intergovernmental tax negotiation under the auspices of the United Nations, and eventually a new UN Convention to tackle international tax dodging. This is a crucial step towards addressing the problems at the global level."

ENDS

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