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BackTax justice, hence the principle that ensures fair distribution of the tax burden, is an essential pillar for the functioning of state and society. Income taxes are automatically deducted from an employees' salary. However, this is not the same for companies. Numerous recent events have revealed how much room for manoeuvre in particular multinational corporations have. The LuxLeaks affair and the Panama Papers gave a glimpse into the scale of tax avoidance and tax evasion.
In recent days, the decision of the EU Commission concerning Apple has caught the attention of the media. The Commission steps up its work against unfair tax practices of individual Member States. The company now has to pay up EUR 13 billion in taxes. In Apple’s case, this step towards more tax justice had been enforced on the basis of EU competition law. The EU Commission has announced that further major companies, such as McDonald's and Amazon will follow.
Efforts are also currently being made to harmonise corporate taxation. The rules for calculating taxable gains shall be harmonised on the basis of the Common Consolidated Corporate Tax Base (CCCTB). However, when it comes to tax policies a gap opens up between the interests of individual states and EU-wide welfare.
Another instrument for greater tax justice in the European Union is the Financial Transaction Tax (FTT). In order to ensure justice, the financial sector was urged to make a contribution after the outbreak of the economic and financial crisis, in particular in the wake of numerous bank rescue packages. As some Member States have flatly rejected a Financial Transaction Tax, among them Great Britain, 10 Member States have decided to engage in increased collaboration; Austria being one of them. So far, it has not yet been implemented; however, this step is long overdue.
#nototaxhavens
The numerous developments demonstrate that civil society has to stay on the ball and to exert political pressure. Correspondingly, the Austrian Chamber of Labour, the Austrian Trade Union Federation and Attac Austria have launched a new campaigning and information homepage: www.nototaxhavens.eu. The homepage is a platform for information on current tax policy developments at the European and international level. The homepage provides the option to become a supporter and/or to take part in the current FTT campaign and to receive ongoing information. Currently, here is the opton to demand the implementation of a Fainacial Transaction Tax from political leaders via mail or social media.
Further information:
Yes to tax justice, yes to the Financial Transaction Tax!
Apple has to pay their tax debts – further multinationals are in focus of the EU Commission