Wednesday, April 13, 2016

A tax haven dream

 Proposals by the European Commission to help crack down on tax dodging by multinational corporations are “close to pointless”, major international charities have warned. 

Oxfam said the EC’s proposals to make firms operating in Europe report where they make profits and pay taxes would allow companies to continue to “rob the world’s poorest”. Christian Aid meanwhile said the plans would allow “dodgy business as usual”.

“The European Commission's piecemeal proposals are not enough to end tax dodging that robs the world's poorest people of billions in lost revenue each year,” said Mark Goldring, Oxfam's GB chief executive. “The new plans only require big companies to report on their activities in the EU and a yet-to-be-decided list of tax havens that is likely to be arbitrary and limited. Unless these proposals are extended to cover all countries there's a risk they could be close to pointless as businesses will still be able to dodge taxes by diverting money to territories not included on the list.”
Diarmid O’Sullivan, ActionAid Tax Policy Adviser, said the plan was "a huge missed opportunity which falls far short of what is needed to stop multinationals hiding tax dodging behind opaque corporate structures".

Toby Quantrill, Christian Aid’s tax justice expert, said: “The Commission plans will allow multinationals to hide large parts of their global affairs from public scrutiny, which is a recipe for dodgy business as usual. “Unless companies have to report on their activities in all the countries where they operate, they could continue to dodge tax on a massive scale, using the places still hidden from view.” 

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