Tax crimes: MEPs want EU financial police force and financial intelligence unit

taxation 2019_

(TJ Dragotta, Unsplash)

This article is brought to you in association with the European Parliament.


The European Parliament on Tuesday adopted a detailed roadmap towards fairer and more effective taxation, and tackling financial crimes.

The recommendations, adopted by 505 votes in favour, 63 against and 87 abstentions, were prepared over a year by Parliament’s Special Committee on Financial Crimes, Tax Evasion and Tax Avoidance (TAX3). They range from overhauling the system to deal with financial crimes, tax evasion and tax avoidance, notably by improving cooperation in all areas between the multitude of authorities involved, to setting up new bodies at EU and global level.

The numerous findings and recommendations include:

  • The Commission should start work immediately on a proposal for a European financial police force and an EU financial intelligence unit;
  • An EU anti-money laundering watchdog should be set up;
  • A global tax body should be established within the UN;
  • There is a lack of political will in member states to tackle tax evasion/avoidance and financial crime;
  • Seven EU countries (Belgium, Cyprus, Hungary, Ireland, Luxembourg, Malta and The Netherlands) display traits of a tax haven and facilitate aggressive tax planning;
  • Golden visas and passports should be phased out, with those offered by Malta and Cyprus singled out for their weak due diligence;
  • Denmark, Finland, Ireland and Sweden criticised for maintaining their opposition to the digital services tax;
  • Several European banks have been involved in the Russian ‘Troika Laundromat’ money-laundering, including Danske Bank, Swedbank AB, Nordea Bank Abp, ING Groep NV, Credit Agricole SA, Deutsche Bank AG, KBC Group NV, Raiffeisen Bank International AG, ABN Amro Group NV, Cooperatieve Rabobank U.A. and the Dutch unit of Turkiye Garanti Bankasi A.S;
  • The Netherlands, by facilitating aggressive tax planning, deprives other EU member states of EUR 11.2 billion of tax income;
  • The cum-ex fraud scheme clearly shows that multilateral, not bilateral, tax treaties are the way forward;
  • Whistleblowers and investigative journalists must be much better protected and an EU fund to help investigative journalists should be set up.

A press conference by the committee Chair, Petr Ježek and the two co-rapporteurs, Luděk Niedermayer and Jeppe Kofod, will be held at 15.30 and can be viewed here.

Quotes

The chair of the special committee, Petr Ježek (ALDE, CZ), said: “Member states are not doing enough and in the EU, the Council is clearly the weakest link. Without political will, there can be no progress. Europeans deserve better.”

Co-rapporteur, Luděk Niedermayer (EPP, CZ), said: “The growing interconnectedness of our economies as well as the digitalisation of the economy need to be addressed more systematically as they affect taxation. Yet many areas of taxation must remain a member state competence and those who pay their taxes must not face extra red tape.”

Co-rapporteur, Jeppe Kofod (S&D, DK), said: “This report is the result of the most comprehensive work ever done by the European Parliament on tax evasion and avoidance. Within the EU we need a minimum corporate tax rate, an end to tax competition and to make it more difficult to bring dirty money in.”

Background

Following continued revelations over the last five years (Luxleaks, the Panama Papers, Football leaks and the Paradise papers), the European Parliament decided to establish a Special Committee on Financial Crimes, Tax Evasion and Tax Avoidance (TAX3), on 1 March 2018.

The report adopted today concludes the committee’s year-long mandate, which saw it hold 18 hearings dealing with particular topics of interest, 10 exchange of views with finance ministers and European Commissioners, and four fact-finding missions – to the US, the Isle of Man, Denmark and Estonia, and Latvia.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the European Sting Milestones

Featured Stings

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Threat from petty criminals who turn to terrorism, a growing concern, Security Council hears

A revolution, an ecosystem, an ocean: 5G is just the beginning

A Sting Exclusive: why the environment is important to your health, by UNEP’s Head for Europe

Is there a new debt crisis on the horizon?

Despite funding crisis, Palestine refugee classrooms set to stay open, says UNRWA

Embrace ‘people-centered multilateralism,’ UN-civil society forum urges

Europe bewildered by radicalisation and terrorism

Better protection against non-cash payment fraud

The four top Americans who flew to Europe perplexed things about Trump’s intentions

EU fight against tax-evasion and money laundering blocked by Britain

FROM THE FIELD: Enslaved Guatemalan indigenous women wait for reparations

All talk but no action against fraudulent bankers

Darfur: Inter-communal tensions still high despite improved security, Mission head tells Security Council

The EU parliamentary elections, explained

Paradise islands of Pacific increasingly vulnerable to climate change, as UN boosts resilience

EU Commission challenges Berlin by proposing breakthrough legislation on banks

Can medical students be prepared for Global Health ethical issues?

Erasmus+ will finance existing UK-EU mobility in the event of no-deal Brexit

ECB: A revolutionary idea to revitalize the European economy with cheap loans to SMEs

Greece’s Tsipras: Risking country and Eurozone or securing an extra argument for creditors?

The end of Spitzenkandidat: EU leaders concluded unexpectedly on EU top jobs

Century challenge: inclusion of immigrants in the health system

EU and China discuss economic and trade relations at the 7th High-level Economic and Trade Dialogue

Terrorism diverts resources from ‘much-needed’ development to ‘costly’ security, warns UN envoy for Central Africa

Do men and women really have different leadership styles?

UN chief condemns terror attack in Kismayo, Somalia

Bridging the gap: Health through technology

The West and Russia accomplished the dismembering and the economic destruction of Ukraine

2019 ‘a critical year’ for Somali politics and development says Security Council

Rohingya emergency one year on: UN says thousands of lives saved, but challenges remain

Education in Emergencies: EU announces record humanitarian funding for 2019 and launches #RaiseYourPencil Campaign

Google case: A turning point in competition rules enforcement

International Women’s Day: Where does she belong?

‘Exercise restraint’ Guterres urges Sri Lankans, as political crisis deepens

Further reforms will promote a stronger and more inclusive Hungarian economy

NASA has released new photos of the Apollo 11 moon landing

EU Telecoms deal: Fees on calls across the EU capped and 5G network by 2020

Impact Investment needs global standards and better measurement

This is how a smart factory actually works

Deal on protecting workers from exposure to harmful substances

Traditional knowledge at ‘core’ of indigenous heritage, and ‘must be protected’, says UN Forum

Germany tries to save Europe from war between Ukraine and Russia

Civilians suffering due to sanctions must be spared ‘collective punishment’ urges UN rights expert

Environmental Implementation Review: Commission helps Member States to better apply EU environment rules to protect citizens and enhance their quality of life

Will the three major parties retain control of the new EU Parliament?

WEF Davos 2016 LIVE: “We need more Schengen but reinforce control!”, France’s Minister of Economy Emmanuel Macron emphasises from Davos

Sweden gives all employees time off to be entrepreneurs

How the Middle East is suffering on the front lines of climate change

The costs of corruption: values, economic development under assault, trillions lost, says Guterres

Trump’s trade wars: Aiming at long term gains for America

Conflict and climate change challenge sustainable development effort: UN report

Millions of Bangladeshi children at risk from climate crisis, warns UNICEF

The Social Committee may accept the new ‘contractual’ Eurozone

Governments should renew efforts to reform support to agriculture

Multiculturalism, social diversity and tolerance

The US calls off globalization, targets Germany. Paris offer to Berlin comes at a cost

2014 budget: The EU may prove unable to agree on own resources

Lithuania should find its own way in the EU

Grexit no longer a threat but how to manage a “tutti frutti” government if not with fear?

Rural Bangladesh has already embraced renewable energy. Here’s what the rest of the world can learn

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s