New measures to tackle tax evasion by multinational companies were endorsed by the European Parliament Special Taxation Committee in Strasbourg, Wednesday, November 25th.
Welcoming the decision, Independent MEP Marian Harkin said that as one of the original signatories requesting the establishment of the Committee she was encouraged by the support shown and which should deliver a clear message to national governments.
She said:- “We do not currently have fair tax competition and, at EU and global levels, we must find a way to ensure that multinationals pay their fair share which would help to ensure that SME’s and personal tax payers do not continue to shoulder a disproportionate share of the tax take.
“However in making any changes we need to ensure that the EU remains competitive with significant economies such as Hong Kong, India or Singapore. I do not support any change to the unanimity rule in relation to the right of member states to set their tax rates as this proposal has the potential to split the EU. We have, with existing instruments at our disposal, the ability to make real progress on tax equity.
“Furthermore, the EU needs to fully implement the OECD stance on Tax Base Erosion and Profit Shifting together with country by country reporting. This will help to ensure taxing rights are in line with real economic activity”, Independent MEP Marian Harkin concluded.