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BackThe far-reaching plans of the responsible EU Tax Commissioner Algirdas Šemeta to tackle tax evasion and avoidance are running the risk of being watered down. The Expert Group of the Commission’s DG TAXUD, which is in charge, largely consists of corporate representatives and their advisors, who are well known for tax avoidance. An evaluation of the Expert Group does not seem to change anything, but there is still hope.
Criticism of the Expert Group
In view of the fact that each year European states miss out on up to a billion euros through tax evasion and avoidance and this in times of tight budgets, the plans of Commissioner Šemeta to tackle this sad state of affairs in more decisive and European manner, were extremely necessary and highly welcome. Nine of the representatives in the Expert Group to discuss this issue were sent by business associations and management consultancies. The remaining six members came from NGOs, science and a trade union. To illustrate the scandal more clearly, the lobby-critical Alliance ALTER-EU together with AK and ÖGB designed the following Infographic.
The representatives on the side of business include among other BUSINESSEUROPE, the umbrella organisation of European Industry, as well as its associated Federation of German Industries (BDI), which in the past time and again attracted attention by lobbying for lower corporate taxes in Europe. Also represented is the American Chamber of Commerce, which, among other in Ireland, has successfully lobbied that under certain circumstances it is not required to tax royalties on intellectual property, but that they may be shifted directly to tax oases. The four represented tax consultant offices too are anything else but unproblematic. They themselves are directly involved to shift their clients’ money to tax oases, passed the tax authorities. It is very difficult to understand how such “Experts” can be expected to make a positive contribution to “Good Governance” - the official title of the Expert Group - in the area of taxation.
Criticism is not taken seriously
In an open letter, representatives of the civil society, among them AK and ÖGB, urged EU Commissioner Šemeta to strive for a reform of the Expert Group.
And indeed, an evaluation was initiated; however, it was carried out in an intransparent manner and so far the results have not been published. According to information disclosed to representatives of the civil society by officials of the Commission, even after the evaluation, there will be no change with regard to its members. However, at the same time it has been implied that there is still hope, because during another meeting with representatives of the civil society, the EU Commission promised to make the evaluation process public and recognized the problem of having members in the Group who work directly against the declared targets of the EU Commission.
Further information:
Article by Corporate Europe Observatory (EN)
Open letter to Commissioner Šemeta (EN)
Study on Expert Groups (EN)
In view of the fact that each year European states miss out on up to a billion euros through tax evasion and avoidance and this in times of tight budgets, the plans of Commissioner Šemeta to tackle this sad state of affairs in more decisive and European manner, were extremely necessary and highly welcome. Nine of the representatives in the Expert Group to discuss this issue were sent by business associations and management consultancies. The remaining six members came from NGOs, science and a trade union. To illustrate the scandal more clearly, the lobby-critical Alliance ALTER-EU together with AK and ÖGB designed the following Infographic.
The representatives on the side of business include among other BUSINESSEUROPE, the umbrella organisation of European Industry, as well as its associated Federation of German Industries (BDI), which in the past time and again attracted attention by lobbying for lower corporate taxes in Europe. Also represented is the American Chamber of Commerce, which, among other in Ireland, has successfully lobbied that under certain circumstances it is not required to tax royalties on intellectual property, but that they may be shifted directly to tax oases. The four represented tax consultant offices too are anything else but unproblematic. They themselves are directly involved to shift their clients’ money to tax oases, passed the tax authorities. It is very difficult to understand how such “Experts” can be expected to make a positive contribution to “Good Governance” - the official title of the Expert Group - in the area of taxation.
Criticism is not taken seriously
In an open letter, representatives of the civil society, among them AK and ÖGB, urged EU Commissioner Šemeta to strive for a reform of the Expert Group.
And indeed, an evaluation was initiated; however, it was carried out in an intransparent manner and so far the results have not been published. According to information disclosed to representatives of the civil society by officials of the Commission, even after the evaluation, there will be no change with regard to its members. However, at the same time it has been implied that there is still hope, because during another meeting with representatives of the civil society, the EU Commission promised to make the evaluation process public and recognized the problem of having members in the Group who work directly against the declared targets of the EU Commission.
Further information:
Article by Corporate Europe Observatory (EN)
Open letter to Commissioner Šemeta (EN)
Study on Expert Groups (EN)