Labour MEP votes against lowering tax avoidance reach for €40 million turnovers

Former Prime Minister Alfred Sant abstained on amendments to a tax transparency resolution that made reference to ‘public country-by-country reporting’, and voted against references to lower the anti-tax avoidance directive’s scope to companies with a turnover of €40 million from the established one of €750 million.

Sant told the European Parliament in Strasbourg that transparency measures should not serve as a pretext to introduce tax harmonisation or reduce member states’ sovereignty on tax.

The Labour MEP said this crucial for smaller, peripheral economies like Malta which saw its flexibility eroded over the years by a continental, one-size-fits-all model.

Sant was explaining his vote on a resolution on mandatory automatic exchange of tax information which he voted in favour of.

“Such measures must fully respect the need to allow a wide legitimate space for the financial services industry to function effectively, as well as the need for European corporations to compete on global markets against players which do not play by European rules.

“I am sure that robust systems that combat tax evasion, aggressive tax planning, money laundering and related issues can be set up on a European basis, and globally, while respecting the above principles,” Sant said.

The resolution passed by 567 votes in favour, 30 against, and 53 abstentions.