ITCO calls on Member States to act on transparency tax avoidance
The Paradise Papers, the newest leak of some 13.4 million files relating to offshore structures, shed light, once again, on the massive scale of tax avoidance and evasion by high net worth individuals and some of the largest and most powerful corporations in the world. Most of these schemes, prepared by international law firms and consultants, explore loopholes in international taxation to ensure that they are legal. The EU must do much more to reform and help reform the international tax system, and ensure effective rules at home with more transparency and fairness and fight these practices, which deprive state budgets from much needed resources to invest in public services and fundamental rights. Paradise Papers mean hell for abiding tax paying citizens and state resources.
Mandatory country by country reporting
In light of these revelations, the ITCO Intergroup calls on the Council of Member States to agree, as a matter of urgency, on the EU list of uncooperative jurisdictions with strong and deterrent sanctions, and to stop blocking the Parliament’s proposal for mandatory public country-by-country reporting (CBCR) for multinational corporations established in Europe, as an essential transparency measure to fight tax avoidance and ensure responsibility and accountability from multinational companies. The current proposal can be found at: http://eur-lex.europa.eu/procedure/EN/2016_107 and is currently in Trialogues.
Anti-money Laundering directive
ITCO also urges the Council to accept the Parliament’s proposals under the revision of the 4th Anti-money Laundering Directive, to extend public access to registers of beneficial owners of companies and trusts, and also include in those registers beneficial ownership data of companies established in third countries, with substantial business in the EU. The clause offers a way for the EU register to truly have a global impact transparency of corporate entities, combatting illegal offshore activity and secrecy not just in the EU, but also throughout the world.