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.

the sting Milestones

Featured Stings

Can we feed everyone without unleashing disaster? Read on

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

Digital distrust: We’re losing faith in technology to solve the world’s problems

This Canadian company transforms plastic waste into building materials

UN agency ramps up effort to counter growing nuclear threat from cyberspace

Germany objects to EU Commission’s plan for a Eurozone bank deposits insurance scheme but Berlin could go along

This is what’s happening to the Amazon, according to NASA

These 3 innovative solar farms show why this renewable technology is hot right now

From fire to fake snow – the global consequences of the climate crisis

Blockchain is not a magic bullet for security. Can it be trusted?

Civil society organisations disenchanted with “Youth Guarantee”

Investment Plan for Europe: European Investment Bank to provide BioNTech with up to €100 million in debt financing for COVID-19 vaccine development and manufacturing

Where is heading Putin’s Russia?

Skills, not job titles, are the new metric for the labour market

How we planted more than 5,000 trees during the COVID-19 pandemic

This is how Middle Eastern retailers can keep up with e-commerce

UN chief calls for ‘increased commitment’ to resolution on 10th anniversary of Georgia conflict

In the future, no one should be excluded from healthcare

Eurozone’s credibility rock solid

These are the UK’s biggest trading partners

Draghi drafts a plan to donate more money to bankers, the era of ‘money for nothin’ is flourishing

The “Legend of the Sun” wishes you Happy Chinese New Year 2015 from Brussels

European Agenda on Migration four years on: Marked progress needs consolidating in face of volatile situation

Mental health and suicide prevention-what can be done to increase access to mental health services in my region?

World Economic Forum CEO Climate Leaders call for continued action toward net-zero emissions

What next for Europe? Three (completely) different Davos views

Record numbers of people in the UK have applied to study nursing

5 Black heroes of the environmental movement

New UN-Syrian Action Plan signals an ‘important day’ for child protection, says UN envoy

Why today’s leaders need to know about the power of narratives

The gender gap of medicine in 2018

How COVID-19 is making companies act for the long term

Ecocraft: take gaming to another level by greening Minecraft

Is Eurozone heading for disinflation?

Fisherwomen of Lake Chad show optimism in face of multiple challenges

Myanmar military committed ‘routine, systematic’ sexual violence against ethnic minorities, UN experts find

Britain and Germany change attitude towards the European Union

Global warming: our responsibility

Growth is running out of steam. How do we prepare for the next crisis?

Mali’s ‘self-defence’ groups must face justice, after deadly intercommunal attacks

How innovation from within is transforming International Organizations as well as lives

Joint EU-U.S. statement following the EU-U.S. Justice and Home Affairs Ministerial Meeting

Youth Guarantee putting young people in jobs

COP24 negotiations: Why reaching agreement on climate action is so complex

Commission sets moderate greenhouse gas reduction targets for 2030

10 Downing street: Another desperate attempt to unite Britain on Brexit

We had the hottest June ever this year – this is what happened around the world

Thailand gave healthcare to its entire population and the results were dramatic

What is the biggest benefit technology will have on ageing and longevity?

Turkey’s foreign bribery enforcement framework needs to be urgently strengthened and corporate liability legislation reformed

Youth not prioritised in new Commission

Amazon indigenous groups want to create a nature sanctuary the size of Mexico

Consumer protection: Deal on EU-wide rules for those sold faulty products

From drought to floods in Somalia; displacement and hunger worsen, says UN

Does Draghi have another ace up his sleeve given his Quantitative Easing failure?

Give a chance to the brothers of Ailan: reception of refugees in Greece

State aid: Commission approves €2.5 billion Italian scheme to support self-employed and healthcare professionals in context of coronavirus outbreak

How can you or your organization support the Hour of Pride initiative?

Fossil fuel support is rising again in a threat to climate change efforts

The 2019 European elections: A pro-European – and young – electorate with clear expectations

Revamp collective bargaining to prevent rising labour market inequalities in rapidly changing world of work

The European Sting at the Retail Forum for Sustainability live from Barcelona

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

%d bloggers like this: