European Commission squanders opportunity to fight corporate tax dodging

The European Commission today published an action plan for a fairer corporate tax system in the European Union.

In response, Catherine Olier, Oxfam’s EU policy advisor, said:

“The European Commission has wasted a unique opportunity to revive proposals to tackle corporate tax dodging abandoned by Member States. The result is a watered down version that lacks teeth, and leaves us wondering how many more scandals are needed for Europe to finally take corporate tax dodging seriously.”

“The European Commission’s plan is so vague that it is hard to imagine how it will clampdown on corporate tax avoidance. We will be forced to rely on Member States who have proved to be only interested in maintaining the status quo, and whose track record of covering up ‘sweetheart’ deals undermines their credibility to make tax fairer.”

“A who’s who of tax havens that conveniently leaves out EU states, particularly Luxembourg, is either a mockery or shows the EU is in denial of being the nucleus of the world’s network of tax havens. It speaks volumes of the unwillingness of Member States to tighten tax rules and ensure that all companies pay their fair share.”

“The demands of European citizens for more tax transparency are being once again neglected. Building a fairer tax system will require multinationals to publicly report their profits and taxes on a country-by-country basis, in the European Union and beyond.”