EU criticises ‘aggressive’ tax practices of 7 member states, including Malta
The European Commission has criticised seven member states for “aggressive” tax policies designed to undercut others to attract multinational companies, a censure that prompted a sharp rebuke from the leader of one of the countries cited.
The European Union’s executive branch pointed the finger at Belgium, Cyprus, Hungary, Ireland, Luxembourg, Malta and the Netherlands, arguing that they have engaged in tax policies that undermine the integrity of the European single market.
“These practices have the potential to undermine the fairness and the level playing field in our internal market and they increase the burden on EU taxpayers,” said Pierre Moscovici, the commissioner responsible for tax policy.
“We must be sure that fair taxation becomes the rule, a rule without any exceptions, outside the EU and inside the EU,” he added.
While dismissing the notion than any one country in the EU operates as a tax haven and arguing that progress is being made, Moscovici said it’s imperative that those named bring forward plans to end policies that undermine the credibility of the EU.
The criticism follows widespread concern over how some countries have used their tax regimes to attract multinationals, such as Apple, Facebook and Google. The concern is that the companies end up paying far less tax than they should to the detriment of European taxpayers.
Many tax campaigners think the EU should have a minimum corporate tax rate and push for a tax regime that reflects exactly where companies earn their profits.
“The big offenders are not just distant tropical locations like Panama and Bermuda,” said Sven Giegold, tax justice spokesperson for the Greens in the European Parliament.