Today, the European Commission presented its Tax Omnibus proposal to simplify tax rules and reduce bureaucracy across the EU.
In response, Oxfam Tax Policy Expert, Julien Desiderio said:
“Simplification is the European Commission’s latest euphemism for deregulation. At a time of record corporate profits and exploding inequality, after decades of a race to the bottom on effective corporate tax rates, the obvious response would be to ensure those who have gained the most contribute more. Instead, this proposal delivers another round of tax giveaways for large corporations while public budgets are at breaking point.
“Rather than closing the loopholes that allow big corporations and the super-rich to avoid paying their fair share, the Commission’s proposal weakens key safeguards against tax avoidance and opens the door to broader exemptions for capital income. That means less revenue for hospitals, schools and climate action, and a bigger bill for everyone else.”
Notas para editores
Download Oxfam’s 2025 report “A European Agenda to Tax the Super-Rich” which outlines Oxfam’s proposals for taxing the super-rich in Europe.
Today, the European Commission presented its Tax Omnibus proposal. This proposal includes revisions to the Anti-Tax Avoidance Directive (ATAD), the Parent-Subsidiary Directive (PSD) and the Directive on Administrative Cooperation (DAC).
Next steps:
- EU countries, through the Council, will review the proposal and provide amendments.
- The European Parliament will examine the text and adopt its opinion.
- The Council will then seek unanimous agreement on the final text, taking into account the European Parliament’s opinion and the European Commission’s position.
Oxfam’s recommendations:
- Ensure that simplification does not lead to deregulation and weaken the transparency and tax rules that underpin EU countries' tax bases.
- Ensure that the Omnibus closes the loopholes that allows the wealthiest individuals to escape their financial obligations by including the vehicles they use most: passive holding companies, opaque asset structures and cross-border information gaps. The PSD and DAC revisions are key to capture this financial obligation:
- The PSD, originally designed to prevent double taxation within corporate groups, is systematically employed by wealthy individuals to avoid paying tax by allowing individuals to route passive income through personal holding companies. This design flaw costs EU countries substantial revenue that could be used to bolster public services and supplement their aid budgets abroad, while also deepening the inequality between taxation of labour and capital.
- An ambitious expansion of the DAC could capture undeclared wealth across the EU by using this reform to end the impunity that has allowed private wealth to remain invisible to tax authorities.
Información de contacto
Jade Tenwick | Brussels, Belgium | jade.tenwick@oxfam.org | work +32 473 56 22 60 | personal (WhatsApp only) +32 484 81 22 94
For more information on our work and to see our latest press releases, please visit oxfam.org/eu.
For updates, follow us at @OxfamEU, @NewsFromOxfam and on BlueSky. You can also find us on LinkedIn.
Download Oxfam’s 2025 report “A European Agenda to Tax the Super-Rich” which outlines Oxfam’s proposals for taxing the super-rich in Europe.
Today, the European Commission presented its Tax Omnibus proposal. This proposal includes revisions to the Anti-Tax Avoidance Directive (ATAD), the Parent-Subsidiary Directive (PSD) and the Directive on Administrative Cooperation (DAC).
Next steps:
- EU countries, through the Council, will review the proposal and provide amendments.
- The European Parliament will examine the text and adopt its opinion.
- The Council will then seek unanimous agreement on the final text, taking into account the European Parliament’s opinion and the European Commission’s position.
Oxfam’s recommendations:
- Ensure that simplification does not lead to deregulation and weaken the transparency and tax rules that underpin EU countries' tax bases.
- Ensure that the Omnibus closes the loopholes that allows the wealthiest individuals to escape their financial obligations by including the vehicles they use most: passive holding companies, opaque asset structures and cross-border information gaps. The PSD and DAC revisions are key to capture this financial obligation:
- The PSD, originally designed to prevent double taxation within corporate groups, is systematically employed by wealthy individuals to avoid paying tax by allowing individuals to route passive income through personal holding companies. This design flaw costs EU countries substantial revenue that could be used to bolster public services and supplement their aid budgets abroad, while also deepening the inequality between taxation of labour and capital.
- An ambitious expansion of the DAC could capture undeclared wealth across the EU by using this reform to end the impunity that has allowed private wealth to remain invisible to tax authorities.
- The PSD, originally designed to prevent double taxation within corporate groups, is systematically employed by wealthy individuals to avoid paying tax by allowing individuals to route passive income through personal holding companies. This design flaw costs EU countries substantial revenue that could be used to bolster public services and supplement their aid budgets abroad, while also deepening the inequality between taxation of labour and capital.
Jade Tenwick | Brussels, Belgium | jade.tenwick@oxfam.org | work +32 473 56 22 60 | personal (WhatsApp only) +32 484 81 22 94
For more information on our work and to see our latest press releases, please visit oxfam.org/eu.
For updates, follow us at @OxfamEU, @NewsFromOxfam and on BlueSky. You can also find us on LinkedIn.