EU Parliament urges tougher action against multinational tax avoidance
The European Parliament adopted a report calling on the European Commission and member states to strengthen measures against corporate tax evasion and offshore havens.
On Tuesday, the European Parliament approved a report that, while lacking direct legal force, presses the European Commission and national authorities to adopt firmer policies against international tax havens. The document calls for clearer disclosure of ultimate beneficial owners, the implementation of automatic data sharing, and harsher penalties for jurisdictions that do not cooperate. It points to the rise of profit shifting by multinational digital firms headquartered outside the EU, which has altered the balance of taxable income among member states.
The report also acknowledges US government concerns, welcomes dialogue, and does not rule out unilateral steps. References were made to the stalled EU adoption of the global minimum tax and the competitive disadvantage faced by European companies due to exemptions enjoyed by US-based multinationals.
Why it matters
Stronger EU tax rules could curb profit shifting and increase public revenues across member states.
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