Brussels, 05/04/2013 (Agence Europe) - Reactions have mushroomed in Europe to the publication on Friday 5 April of an “Offshore Leaks” investigation by 86 journalists from 30 press bodies working with US consortium ICIJ, providing information about 130,000 people and companies in 170 countries that hold secret bank accounts in tax havens (see EUROPE 10820).
German finance minister Wolfgang Schäuble welcomed publication of the information because it will increase the pressure for tackling tax evasion, something that he says is very difficult to do at EU level because tax decisions have to be taken unanimously and not all countries will cooperate. He said that the only way to find out about tax fraud was to be given the information and that politicians therefore relied on cooperation from other bodies, the banks for example.
The European Commission says that the member states must introduce at Council of Minister level the draft measures to coordinate action against tax evasion, tax havens and company tax avoidance (see EUROPE 10746). The Commission urges member states to stick to the EU information rules and update their agreements with tax havens so remove the ability of multinationals to avoid taxes by shifting cash from one country to another. Harmonisation of tax practices, respect of EU rules and sanctions against countries harbouring tax evaders must be used, says the Commission, to put an end to tax avoidance in reality.
Greens/EFA MEP Sven Giegold (Greens/EFA, Germany) calls on member states to introduce a “European version of FATCA,” the US rules that fine banks up to 30% of turnover if they and their branches overseas refuse to provide the US tax authorities with details about us taxpayers' bank accounts abroad and US taxpayers' assets in foreign companies and foundations. He says “Automatic exchange of information is the only measure to effectively put a stop to tax evasion in the international financial market. (...) The UK and Germany are already taking the wrong path, trying to introduce agreements based on anonymity with Switzerland. (...) It makes no sense to wait for countries like Luxembourg and Austria, which have blocked progress towards tax transparency in the EU” by refusing to abide by the automatic exchange of information among tax offices in order to keep secret bank accounts in their countries. (FG/transl.fl)