MEPs demand EU members to stop blocking stronger tax reforms

The European Parliament special committee on taxation (TAX 3) has voted on a final report that will call on EU member states to match the ambition of the European Parliament on tackling tax evasion, avoidance and money laundering.

TAX3 is the third special committee on taxation which continues on the work of the PANA inquiry committee.

The final report calls on member states to make public the purchasers of golden visas, as well as automatic exchange of information within the EU on financial instruments such as pension funds and crypto-currencies.

PN head of delegation Davibd Casa said the committee was also insisted that member states introduce anti-SLAPP laws to protest journalists. “After the hearing on 17 Black, MEPs expressed concern on the situation Malta… the committee asked the United Arab Emirates to ensure that funds frozen in the 17 Black accounts stay frozen, and it emphasised the lack of independent of the Maltese FIAU and the commissioner of police.”

The report includes a proposal that the ultimate beneficial owners of companies cannot hide behind strawmen. “Across Europe the social contract is broken and ensuring that the rich and powerful pay a fair share of tax is an essential building-block for a social contract fit for a globalised world economy and vital for rebuilding citizens’ trust in democracy. We need to build on this momentum in the Parliament and take the fight to the national capitals where we can truly change the rules around tax,” Green MEP Molly Scott Cato, a member of the TAX 3 committee, said.

The report criticises the Member States and the Council for not delivering on tax legislation that is key to fight tax avoidance and tax evasion and their lack of political will to take substantial steps in the fight against money laundering, tax fraud, tax evasion and aggressive tax planning or to comply with the Treaty and the principle of sincere cooperation.

The report calls on the Commission to clarify on the existing rules, or propose an update of EU public procurement directive, if necessary, that would allow for tax related considerations in the exclusion or selection criteria for public procurement.

The report calls on the European Commission to propose changes in the current EU law that would enable to ban letterbox companies even if resident in EU Member states.

The report calls on Member States to phase out all existing CBI or RBI schemes (golden visa) as soon as possible.

It calls on the EC Calls on the Commission to assess decreasing nominal tax rates and its impact on ETRs in the EU and to propose remedies within the EU and towards third countries.

“There is a clear lack of political will on the side of the EU member states to fight tax injustice,” Green MEP Sven Giegold said.  “This report clearly shows that we need much more action on anti-money laundering and transparency around corporate taxation… EU countries need to agree on minimum tax rates to stop the race to the bottom on taxation. It is highly regrettable that the EPP, Conservatives and Liberals together have prevented a clear call for minimum tax rates for large companies within the EU.”