Tax justice campaigners say European Commission plans to crack down on offshore tax avoidance don’t go far enough.
Reacting to today’s European Commission proposals
on new transparency rules for tax planning intermediaries, Eurodad welcomed the proposals but said they still leave a lot to be desired.
“We agree with the European Commission that we need transparency around the role of intermediaries and the arrangements which large multinational corporations use to avoid taxes,” said Tove Maria Ryding, Tax Coordinator at Eurodad. “Unfortunately, the Commission’s proposal focuses on how European tax administrations can get more information, but ignores the public’s right to know what's going on.
“Just recently, we've even seen European tax administrators backing the importance of sharing information with the public, so that politicians and large multinational corporations can be held to account. If the public is left in the dark, the tax administrators will not be able to win the fight against big multinational corporations, who often have governments on their side and benefit from loopholes in the legislation,” said Ryding.
“As long as the tax arrangements of multinational corporations remain hidden behind a thick veil of secrecy and confidentiality, it will be difficult to create the political will for genuine change, since those who can see what's going on are not allowed to tell anyone.
“We're also missing concrete proposals on the consequences for intermediaries who support large scale tax dodging. For example, it doesn't make sense that big accounting firms who have helped multinational corporations dodge billions of Euros in tax payments, can at the same time get paid large amounts of tax-payers’ money doing consultancy work for governments.”