Corporate taxation
Greens Condemn Lack of Action from Commission
The European Commission today presented an action plan on corporate taxation. Following the revelation last November of the scandalous tax affairs in Luxembourg during his time as Prime Minister, Green MEPs challenged President Juncker to 'Act or Go'. Six months on they have expressed alarm at the lack of action and clear evidence of back-tracking from the Commission over which he presides.
Molly Scott Cato, tax spokesperson for the Greens/EFA group, said:
"This proposal underlines how the Commission is dragging its heels over the proposal for country-by-country tax reporting, which is a crucial measure for ensuring transparency of corporate taxation. It has been stalled for all sectors, despite it having been put in place for the banking sector in 2013 (1). The first returns for the finance sector make transparent the profit shifting of large banks and the low effective tax rates that result. The mechanics are already in place for the financial sector and demonstrate a clear improvement in transparency; it is a straightforward matter for the Commission to extend this to other sectors. The delays smack of a lack of clear intent and undermine Juncker's claim to be the champion of fair tax."
Philippe Lamberts, Greens/EFA Co-President and author of the tax transparency obligation for banks added:
"We welcome that the Commission has revived discussions on a common consolidated corporate tax base (CCCTB) (2). However, we know that the countries that benefit most from the absence of a mandatory CCCTB, including Ireland and the UK, are doing their best to sap the Commission's resolve. Without consolidation, which the Commission proposes to put off till the cows come home, the end of corporate tax dodging is inevitably also delayed. In order to be effective, a consolidated base must be accompanied by a minimum rate.
We are also disappointed that the Commission's tax proposal announced in March, consisting of a sensible clarification and extension of existing obligations to exchange information on sweetheart deals for multinationals, is being undermined by a range of member states that prefer to continue to operate in the shadows where tax agreements are concerned."
Notes:
1. First consultations took place in 2010, and an impact assessment was carried out with regard to banks and showed no negative consequences.
2. Vestager made this clear when addressing the Parliament's special TAXE committee: http://tinyurl.com/qbrd2a5
