EU Summit: European leaders postpone promised action on tax justice
Following the EU summit this week, Tove Maria Ryding, Tax Coordinator at the European Network on Debt and Development, said: “European leaders postponed the promised action on tax justice and transparency and went on vacation. This will feel like a Christmas present to tax dodgers who can continue business as usual until the leaders deliver on their promises."
She continued: “While recognising the need for action, EU leaders wasted an opportunity to crack down on tax dodging despite promising to do so in May. Earlier this week, Eurodad released a report showing that the tough political speeches are not turning in to action, and the conclusions from the leaders' meeting confirm this. Time is running out as the EU heads towards the elections in Spring 2014, and before that date our leaders must action the directives that will ensure transparency and tax justice in future.
"While we are waiting for them, we still have companies with secret owners and we still don’t know whether multinational companies are paying their fair share of taxes in the countries where they operate. What we do know is that European companies continue dodging taxes in Europe as well as in developing countries. Our concern is that this is pulling an enormous amount of resources out of developing countries – resources that should be used to fight poverty."
To read more about the EU's role and responsibilities in tax-related capital flight in developing countries, read our new report:
"Giving with one hand and taking with the other - Europe's role in tax-related capital flight from developing countries"