The European Commission has outlined its ‘tax transparency package’ today. As a consequence of Luxembourg Leaks the EU Commission suggests to change only one provision in one directive. The Commission sketches out its future plans in a communication. Commenting on the proposals, Green economic and finance spokesperson Sven Giegold stated:
“What the Commission presented today as tax transparency ‘package’ is a drop in the bucket and embarassing. It reveals that the Juncker Commission has still not understood the seriousness of the situation and the need for a comprehensive response at EU level. The planned improvement on information exchange between member states is necessary and welcome. Nevertheless, it remains the smallest possible step towards more tax justice in the EU.
The Greens will definitely continue to push the Commission, EU governments and the European Parliament to ensure a credible EU response to all systems of tax avoidance.
Against tax dumping we need a binding common consolidated corporate tax base (CCCTB) and a European minimum corporate tax rate based on it. Both so far is missing despite promises made on by President Juncker after the Luxembourg scandals. Thereby, the EU Commission insists on its failed idea of tax competition in Europe.
Not even a breakthrough in tax transparency is part of the proposals made today. The Commission still refrains from presenting a proposal for country-by-country reporting to be extended to all transnational companies. What is already legally obligatory for banks and ressource extracting industries is only put under under extensive consideration for other transnational corporations. It is outright scandalous that the German government opposes tax transparency for big business, even though an explicit “Nein” in the coalition agreement between Christian Democrats and Social Democrats.”