11 December 2014

LuxLeaks Trigger Strengthened Tax Evasion Rules

Momentum is building in the EU Parliament for fast-tracking legislation that would crack down on tax avoidance. The bill would mandate member states to share information on agreements struck with multinationals and specify the predicted tax amounts. EU Commission President Jean-Claude Juncker admitted he was “weakened” by the latest LuxLeaks findings. The Greens call the Luxembourg tax deals a “breach of treaty obligation of sincere cooperation between EU states.” The ripple effects of the scandal might lead to a de-facto fiscal union, and thus resolve the problem of tax competition among member states.

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