18 Amendments of Eva JOLY related to 2012/0000(INI)
Amendment 1 #
Draft opinion
Paragraph 1
Paragraph 1
1. Notes that tax-to-GDP ratios are low in most developing countries; stresses the need for these countries to mobilise tax resources, which are more predictable and sustainable than foreign assistance and help to reduce debt, in order to achieve the MDGStresses upon the need to mobilise and secure tax resources in developing countries in order to achieve the MDGs, as they are more predictable and sustainable than foreign assistance and help to reduce debt; but notes that tax resources-to-GDP ratios are low in most developing countries, which are confronted with social, political and administrative difficulties in establishing a sound public finance system, thereby making them particularly vulnerable to tax evasion and avoidance activities of individual taxpayers and corporations;
Amendment 2 #
Draft opinion
Paragraph 1a (new)
Paragraph 1a (new)
1a. Points out that illicit outflows are a major explanation for developing country debt, while aggressive tax planning is contrary to the principles of Corporate Social Responsibility;
Amendment 3 #
Draft opinion
Paragraph 2
Paragraph 2
2. Calls on the EU to assist them in this taskNotes that tax systems in many developing countries are not in line with international standards (weak fiscal jurisdiction and inefficiencies in tax administration, high level of corruption; insufficient capacity to introduce and sustain well-functioning tax registers, etc.); calls on the EU to upgrade its assistance within the remit of DCI and EDF in terms of tax governance and in addressing international tax fraud and excessive optimisation, by building up theirdeveloping countries' capacity toin detecting and prosecuteing inappropriate practices through stronger tax governance cooperation; likewise, deems that support shall be provided for the economic reconversion of developing countries that are tax havens;
Amendment 4 #
Draft opinion
Paragraph 4
Paragraph 4
4. Welcomes the Commission’'s commitment to promotinge the automatic exchange of information; calls once more, however, for, as the future European and internationally binding multilateral automatic tax-information exchange agreement, which should also cover trusts and foundat standard of transparency and exchange of information in tax matters; calls once more for action beyond the OECD framework to address illicit financial flows, tax evasions, and include sanctavoidance in view of their varionus for non-cooperative jurisdictions and for financial institutions that operate with tax havens; calls on the Commission to propose a Europeanshortcomings; deplores the fact that the OECD allows governments to escape its blacklist merely by promising to adhere to the information exchange principles, without ensuring that these principles are effectively put into practice; considers also that the requirement to conclude agreements with 12 other countries in order to be removed from the black list of tax havens and European sanction regimes in the evis arbitrary as it does not refer to any qualitative indicators for an objective assessment of non-compliance with good governance practices;
Amendment 5 #
Draft opinion
Paragraph 4a (new)
Paragraph 4a (new)
4a. Also deplores the laxity of the Global Forum's standards regarding the quality of information to be held (e.g. lack of requirement of disclosure of beneficial ownership; lack of legal means to counter refusals or delays in the provision of information upon request; reliance on private agents, not public registries, for information, etc.); believes that the Global Forum peer review process will be far more effective if outside experts were involved in all of its stages;
Amendment 6 #
Draft opinion
Paragraph 4b (new)
Paragraph 4b (new)
4b. Calls once more for an internationally binding multilateral automatic tax-information exchange agreement, which should also cover trusts and foundations, and include sanctions for non-cooperative jurisdictions and for financial institutions that operate with tax havens; urges the EU to adopt measures similar to the US Stop Tax Haven Abuse Act and to consider the possibility of withdrawing banking licences from financial institutions that operate with tax havens; calls on the Commission to propose European black list of tax havens based on stringent criteria and to propose European sanction regimes in the event of non-compliance or enhanced cooperation in case an EU approach is not possible;
Amendment 7 #
Draft opinion
Paragraph 4c (new)
Paragraph 4c (new)
4c. Recalls that reinforcing transparency in tax matters includes the identification of owners and beneficiaries of companies, trust funds, foundations;
Amendment 8 #
Draft opinion
Paragraph 4d (new)
Paragraph 4d (new)
4d. Notes that tax evasion and money laundering are facilitated by Trust and Company Service Providers (TCSP), as they enable the establishment of structures that render the beneficial owners unaccountable for their actions and obligations, including to tax authorities, to creditors and to the victims of human rights violations; takes the view that TCSPs should be required to carry out due diligence in accurately establishing beneficial ownership information under anti-money laundering rules; also deems that companies should only be allowed to incorporate in a jurisdiction if they have meaningful economic substance within that jurisdiction (for example, staff and sales);
Amendment 9 #
Draft opinion
Paragraph 4e (new)
Paragraph 4e (new)
4e. Observes that trusts are often used as conduits for tax evasion, however, notes with concern that the majority of countries do not require registration of legal arrangements; calls on the EU to introduce a European register for trusts and other secrecy entities, as a prerequisite for dealing with tax avoidance;
Amendment 10 #
Draft opinion
Paragraph 4f (new)
Paragraph 4f (new)
4f. Points out that according to the United Nations Office on Drugs and Crime (UNODC) the estimated amount of money laundered globally in one year is 2 - 5% of global GDP, or $800 billion - $2 trillion in current US dollars;
Amendment 11 #
Draft opinion
Paragraph 4g (new)
Paragraph 4g (new)
4g. Stresses that the fight against corruption is an integral part of capacity building for tax administration; calls on the full implementation of the Merida Convention against Corruption (2003);
Amendment 12 #
Draft opinion
Paragraph 5
Paragraph 5
5. UFully supports the Commission's proposal to explicitly mention tax crimes as predicate offences to money laundering, in line with the 2012 recommendation of the Financial Action Task Force-FATF; urges the EU to enhance the transparency of beneficial ownership information and anti-money laundering (s well as the AML) customer diligence procedures; favours an EU-wide harmonisation of the money- laundering offence, and calls for the full implementation of Financial Action Task Force (FATF) standards, through effective monitoring and credible sanctions;
Amendment 14 #
Draft opinion
Paragraph 5a (new)
Paragraph 5a (new)
5a. Stresses that trade mispricing is one of the most prominent drivers of illicit financial outflows; but notes the limitations, complexities and difficulties in implementing the arm's length principle to adress it, especially for developing countries; calls on the Commission to work upon concrete proposals to ensure that the G20, the OECD, the UN and the WTO consider a broader set of indicators and methods for tackling trade mispricing, among which are the US ‘comparable profit methods’ that have shown promise in determining the incorrect pricing of transactions;
Amendment 15 #
Draft opinion
Paragraph 6
Paragraph 6
6. Points out that, by reinforcing a bilateral rather than a multilateral approach to transnational tax issues, dDouble tTaxation aAgreements (DTA) risk encouraging transfer pricing and regulatory arbitrage; hence, since they usually result in a fiscal loss for developing countries, through lower withholding tax rates on dividend, interest and royalty payments, calls on the Commission, therefore, to refrain from promoting such agreementsthese, instead of tTax iInformation eExchange aAgreements (TIEAs), since they usually result in a fiscal loss for developing countries;
Amendment 16 #
Draft opinion
Paragraph 6a (new)
Paragraph 6a (new)
6a. Notes with concern that many developing countries find themselves in a very weak bargaining position towards some foreign direct investors "shopping around" for tax subsidies and exemptions; deems that in case of sizeable investments, companies shall be required to make precise commitments on the positive spill over effects of the project in terms of local and/or national economic and social development;
Amendment 18 #
Draft opinion
Paragraph 7a (new)
Paragraph 7a (new)
7a. Recalls that the possibility to detect and prosecute tax violators depends crucially on data availability and data quality; stresses that a strategy countering tax evasion and avoidance should involve both measures at the national as well as the international level, as in the case of unveiling a firm's mispricing practices, which requires a well functioning cross- border information exchange between domestic tax administrations, auditors and foreign public authorities;
Amendment 19 #
Draft opinion
Paragraph 7b (new)
Paragraph 7b (new)
7b. Calls on the EU to upgrade technical assistance in developing countries so as to address transfer pricing manipulation, and to scale up its cooperation on tax matters by encouraging the African Tax Administration Forum (ATAF) to enhance tax mobilisation and democratic governance in Africa;
Amendment 20 #
Draft opinion
Paragraph 7c (new)
Paragraph 7c (new)
7c. Underlines that, in a context where export revenues vary according to raw material price fluctuations, it is important to give developing countries policy space to increase their capacity to resist external shocks and to implement countercyclical action plans to boost the economy, by allowing them to use i.a. the tool of export taxation.