May 26, 2020

What the European Parliament asks against tax crimes

What the European Parliament asks against tax crimes

The European Parliament wants more measures against tax fraud overwhelmingly: 505 votes in favor, 63 against and 87 abstentions have been approved the recommendations of the special commission on financial crimes, evasion and tax fraud (TAX3).

Among other changes, MEPs call for an in-depth review of the mechanisms to combat financial crime, evasion and tax avoidance, especially by improving cooperation among the many authorities involved. In addition, they propose to create new organizations at European and international level.

Among the changes proposed by the European Parliament, the following can be highlighted:

The creation of a European financial police, framed in Europol, with the capacity to carry out investigations, and a financial intelligence unit.

Prohibition of the screen companies.

The establishment of a UN agency focused on taxation.

The Member States do not show will policy to end tax evasion and avoidance and financial crime.

Seven countries of the EU (Belgium, Cyprus, Hungary, Ireland, Luxembourg, Malta and the Netherlands) have gaps in their legislation that facilitate aggressive tax planning.

Better quantify the magnitude of tax evasion (data collection) and get the European Commission to define specifically what aggressive tax planning is and what harmful tax practices are at the EU level.

The programs that allow obtaining the nationality or the residence in a Member State in exchange for an investment should disappear, especially those of Malta and Cyprus, given the low demands on applicants. They will violate the principle of loyal cooperation.

The financial scandal cum-ex confirms that fiscal agreements must be multilateral, and not bilateral.

Reinforced protection for whistleblowers and investigative journalists.

Introduce the principle that the tax is paid where the value is generated by establishing a common corporate tax base (BICIS) and a common consolidated corporate tax base (CCCTB). To this end, the Commission is requested to submit a new proposal based on Article 116 of the TFEU, whereby the European Parliament and the Council intervene in accordance with the ordinary legislative procedure to adopt the necessary legislation, in case the Council does not adopt a unanimous decision on the proposal to create a CCCTB.

Add the tax as part of the social responsibility report of multinational companies (obligation to communicate non-financial data).

Claim to the Commission to present a legislative proposal on the identification of the effective beneficiaries of the corporate structures established in third countries, if it is considered that this measure is legally viable. Also, evaluate the need and proportionality of harmonizing the information in the property and property registers.

That the Code of Conduct Group (taxation of companies) examine and compulsorily approve each tax amnesty program before a Member State applies it. Also, request a review and update of the Code of Conduct Group mandate as well as greater transparency.

That the EU agreements with third countries Include tax cooperation to avoid tax avoidance and the introduction of principles of good fiscal governance.

Socialist MEP Ramón Jáuregui says that "the conclusions of the TAX3 Commission are a true road map with recommendations to combat tax evasion and aggressive tax planning."

The spokesman of Podemos, Miguel Urbán, highlights as elements in favor of the document approved today, among other things, which "points out the existing and growing economic asymmetries within the EU, aims at the free movement of capital without corrective mechanisms and fiscal policies regressors as factors of tax evasion, identifies intermediaries such as the large private banks as enablers and facilitators of tax evasion, denounces the framework of impunity generated by the recurring tax amnesties promoted by the Member States, and highlights for the first time the specific to tax evasion on women, the world of work, welfare or consumption ".

Ernest Urtasun, spokesperson for Catalonia in Comú and member of the TAXE 3 commission commented: "Today the European Parliament has sent a clear message: the race has to end down among states to see who is charging less taxes since that alone This is in direct conflict with the irresponsible and unrealizable tax proposal of Pablo Casado, which proposes a nominal rate of Corporate Tax of 20%, and this unprecedented reduction goes against the recommendations approved today by the plenary session of the Parliament. It also goes against what is being done throughout Europe, which is precisely trying to recover tax revenues from large companies that are increasingly paying less taxes than they should. "

After the different scandals about money laundering in recent years (LuxLeaks, the roles of Panama, Football Leaks and the roles of paradise), the European Parliament decided to launch, on March 1, 2018, a special commission on financial crimes , evasion and tax fraud (TAX3).


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