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EU to clamp down on tax evasion

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EU to clamp down on tax evasion

Algirdas Semeta - Photo EC

(BRUSSELS) - EU governments lose a "scandalous" one trillion euros ($1.3 trillion) a year to tax dodgers and that has to stop now to prevent further damage to state finances and the economy, the European Commission said on Thursday.

Unilateral action alone is not enough, however, and the EU must act in a coordinated way so as to tackle the root causes of the problem, EU Tax and Customs Commissioner Algirdas Semeta said.

"Around one trillion euros is lost to tax evasion and avoidance every year in the EU. Not only is this is a scandalous loss of much-needed revenue, it is also a threat to fair taxation," Semeta said.

"While member states must toughen national measures against tax evasion, unilateral solutions alone won't work" because in globalised economy, "national mismatches and loopholes become the play-things of those that seek to escape taxation.

"A strong and cohesive EU stance against tax evaders, and those that facilitate them, is therefore essential," Semeta said.

As a first step, the EU should take a tougher stance against tax havens, going beyond current international measures to identify them and have them put them on national blacklists.

Secondly, member states should clamp down on "Aggressive Tax Planning" so as to close legal technicalities and loopholes which some companies exploit to avoid paying their fair share," Semeta said.

The Commissioner also called for member states to adopt more common tax treatments so as to minimise the room for avoidance, while there should be changes too to "include special tax regimes for wealthy individuals."

Taxation, especially at a time when the debt crisis has put governments under intense pressure to increase revenues, is a hot topic after reports that some major international companies have avoided large tax bills.

Earlier this week, Britain announced a campaign against "tax dodgers" and "cowboy advisers" to claw back GBP 2 billion a year and many other countries are looking at the issue to see what can be done.

Tax evasion and avoidance - background guide

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Cross Border taxation pays more

Posted by Gary G Stromberger at 07 December 2012, 00:38 CET
The reason for tax evasion is usually domestic Provincial/State Court system continually ignoring Federal Tax! (& its court).

Trying to erase our Identity & allowing money-laundering via the lower court system is why one would choose to pay a higher combined tax (or comply to the Double Taxation Avoidance Agreement).

I don't have any cash right now & hoping that Capital in the Eurozone will have an "easing of limitations" to enable Capital Liberation for myself in Canada, being a Canadian Tax resident.

Cross Border taxation pays more

Posted by plevria despoina at 16 December 2012, 00:12 CET
Good moring.
Do have in mind, befora the Board of Greece and Boulgaria takes place, that THE elements having been announced by our "prime" are faulty, AND also that UNEMPLOYMENT of ours is reaching a peak. Mr Mladevof is not to get easily persuaded by wrong arguments on these two fields, in any case. DESPOINA PLEVRIA Informaticien