Commission tax package: The meat is yet to come
BRUSSELS, June 17. Today, the European Commission presented the second part of a set of tax measures to tackle corporate tax avoidance.
Tax evasion poses a major drain on fiscal resources in Europe. But it is not just the EU that suffers: last year, developing countries lost an estimated $1 trillion to illicit financial flows as a result of corruption, tax evasion and money laundering.
The tax package proposed today contains several initiatives, including the launch of a public consultation on requiring multinational companies to publish certain tax information on a country-by-country basis. The potentially transformative impact of such a measure indeed lies, crucially, in the public availability of those reports.
Public country-by-country reporting for large multinational companies would help citizens in poor countries to follow the money and ensure taxes owed are collected. This could unleash critical funds in these countries to invest in their own development and ultimately help reduce dependency on aid.
Tamira Gunzburg, director of ONE Brussels, said:
“We welcome the Commission involving stakeholders in its efforts to oblige large multinationals to publish where they declare profits and where they pay taxes. Yet this should not slow down the momentum for financial transparency. Given that measures already exist for certain sectors, we expect the Commission to charge ahead with legislation for public country-by-country reporting well before the end of the year.”
“This would benefit not just European citizens but also the world’s poorest. That is why the EU should announce a commitment to pass legislation on public reporting during the Financing for Development Summit in Addis Ababa in July. There, world leaders will decide on how to mobilise sources of financing beyond aid in order to end extreme poverty by 2030.”
Notes to editors
- Contact, information &interviews: Tess Uytterhoeven| Media Manager | [email protected] | m: +32 (0)471 89 64 22
- About Addis: In July, the Third International Conference on Financing for Development will be held in Addis Ababa. This conference brings together all countries to decide on how to finance the fight against extreme poverty.
- ABOUT ONE: ONE is a campaigning and advocacy organisation of nearly 7 million people taking action to end extreme poverty and preventable disease, particularly in Africa. Not politically partisan, we raise public awareness and press political leaders to combat AIDS and preventable diseases, increase investments in agriculture and nutrition, and demand greater transparency in poverty-fighting programs. To learn more, go to ONE.org.