In the position, which was endorsed earlier this year by CESI’s Trade council ‘Central Administration and Finances’, CESI and UFE, the Union of Finance Personnel in Europe, welcome the fact that the new European Commission has placed the fight against tax avoidance and tax fraud practised by businesses on the top of its political agenda but argue that despite some progress, several demands of trade unions in the area of tax transparency and tax justice have not yet been met.
In particular, CESI and UFE:
• welcome the European Commission’s recent proposal on increased transparency requirements for corporate taxation but regret that it only applies to multinationals that operate in the European Union, thus excluding foreign tax havens and pushing businesses to relocate;
• call for a Tax Identification Number (NIF) covering all 28 EU Member States as a tool for public administrators to facilitate the exchange of tax-related information between countries;
• encourage the Commission to pursue an ambitious agenda in terms of a Common Consolidated Corporate Tax Base (CCCTB) in the EU;
• welcome the European Commission’s legislative initiative aiming to introduce six legally binding measures to fight aggressive tax planning applied by corporation but question whether these measures are sufficient to abolish tax loopholes in general and resolve the problem of unjustified transfer pricing, patent boxes, notional interests, hybrid products acting as a base for double non-taxation; and
• encourage the Commission to work towards a harmonisation of procedures as regards the denunciation of tax swindling – noting that the Member States with the lowest fines and least constraints benefit from a competitive advantage and are responsible for a certain amount of distortion of competition, thus promoting tax fraud.
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