BETA


2015/2058(INI) Tax avoidance and tax evasion as challenges for governance, social protection and development in developing countries

Progress: Procedure completed

RoleCommitteeRapporteurShadows
Lead DEVE SCHLEIN Elly (icon: S&D S&D) RÜBIG Paul (icon: PPE PPE), LUCKE Bernd (icon: ECR ECR), MICHEL Louis (icon: ALDE ALDE), SARGENTINI Judith (icon: Verts/ALE Verts/ALE), CORRAO Ignazio (icon: EFDD EFDD)
Committee Opinion ECON BAYET Hugues (icon: S&D S&D) Petr JEŽEK (icon: ALDE ALDE), Beatrix von STORCH (icon: EFDD EFDD), Miguel VIEGAS (icon: GUE/NGL GUE/NGL)
Lead committee dossier:
Legal Basis:
RoP 54

Events

2015/12/01
   EC - Commission response to text adopted in plenary
Documents
2015/07/08
   EP - Results of vote in Parliament
2015/07/08
   EP - Decision by Parliament
Details

The European Parliament adopted by 50 votes to 57, with 23 abstentions, a resolution on tax avoidance and tax evasion as challenges for governance, social protection and development in developing countries.

Parliament recalled that tax evasion and avoidance have been identified as major obstacles to the mobilisation of domestic revenue for development by all major international texts and conferences on financing for development. It called on the Commission promptly to put forward an ambitious action plan, in the form of a communication, to support developing countries fighting tax evasion and tax avoidance. Members insisted that effective mobilisation of domestic resources and a strengthening of tax systems will be an indispensable factor in achieving the post-2015 framework that will replace the Millennium Development Goals (MDGs). It expressed as well concerns about the level of corruption and non-transparent public administration that hinder tax revenues from being invested in state-building, public services or public infrastructure.

According to Parliament, tax resources remain low as a proportion of GDP in most developing countries , making them particularly vulnerable to the tax evasion and avoidance activities of individual taxpayers and companies. This represents a considerable financial loss for developing countries which needs to be addressed.

Action plan to combat tax avoidance and tax evasion in developing countries : the Commission is urged to take concrete and effective measures to support developing countries and regional tax administration frameworks, such as the African Tax Administration Forum and the Inter-American Centre of Tax Administrations, in the fight against tax evasion and tax avoidance, in developing fair, well-balanced, efficient and transparent tax policies.

Parliament asked the Commission to give good governance in tax matters, and fair, well-balanced, efficient and transparent tax collection, a high place on the agenda in its policy dialogue (political, development and trade), and in all development cooperation agreements, with partner countries. It also called for information on beneficial ownership of companies, trusts and other institutions to be made publicly available in open-data formats in order to prevent anonymous shell companies and comparable legal entities from being used to launder money, finance illegal or terrorist activities, conceal the identity of corrupt and criminal individuals, and hide the theft of public funds and profits from illegal traffic and illegal tax evasion.

It believes, furthermore, that all countries should at minimum adopt and fully implement the Financial Action Task Force’s (FAFT) anti-money laundering recommendations.

Publication of tax information : Parliament invited the European Union and its Member States to enforce the principle that listed or unlisted multinational companies of all countries and sectors, and especially those companies extracting natural resources, must adopt country-by-country reporting (CBCR) as a standard, requiring them to publish, as part of their annual reporting and on a country-by-country basis for each territory in which they operate, the names of all subsidiaries and their respective financial performance , relevant tax information, assets and number of employees, and to ensure that this information is made publicly available, while minimising administrative burdens by excluding micro-enterprises. The Commission is called upon to put forward a legislative proposal to amend the Accounting Directive accordingly.

Parliament recalled that public transparency is a vital step towards fixing the current tax system and building public trust. It underlined that tax exemptions and advantages granted to foreign investors through bilateral tax treaties provide MNCs with an unfair competitive advantage relative to domestic firms, especially SMEs. It also called for the fiscal conditions and regulations under which extractive industries operate to be revised .

Parliament called for the establishment, by the end of 2015, of an internationally agreed definition of tax havens , of penalties for operators making use of them and of a blacklist of countries, including those in the EU, that do not combat tax evasion or that accept it . It called on the EU to support the economic reconversion of those developing countries that serve as tax havens.

It also urged:

Member States with dependencies and territories that are not part of the Union to work with the administrations of these areas towards the adoption of the principles of tax transparency and to ensure that none serve as tax havens; that, when negotiating tax and investment treaties with developing countries, income or profits resulting from cross-border activities should be taxed in the source country where value is extracted or created; that impact assessments of European tax policies on developing countries be conducted (Parliament welcomed the Commission’s revised Action Plan on tax evasion and tax avoidance, to be presented in 2015); the Member States to agree swiftly on a Common Consolidated Corporate Tax Base ; for sanctions to be considered both for non-cooperative jurisdictions and for financial institutions that operate within tax havens; the Commission and the Council, and on partner governments, to ensure that tax incentives do not constitute additional options for tax avoidance; the EIB and the EBRD, and on Member States’ development finance institutions, to monitor and ensure that companies or other legal entities that receive support do not participate in tax evasion and avoidance.

Documents
2015/07/08
   EP - End of procedure in Parliament
2015/07/07
   EP - Debate in Parliament
2015/06/09
   EP - Committee report tabled for plenary
Details

The Committee on Development adopted an own-initiative report by Elly SCHLEIN (S&D, IT) on tax avoidance and tax evasion as challenges for governance, social protection and development in developing countries.

The Committee on Economic and Monetary Affairs, exercising its prerogatives as an associated committee under Parliament’s Rule 54 of the Rules of Procedure was consulted to give an opinion on the report.

Members recalled that tax evasion and avoidance have been identified as major obstacles to the mobilisation of domestic revenue for development by all major international texts and conferences on financing for development. They called on the Commission promptly to put forward an ambitious action plan, in the form of a communication, to support developing countries fighting tax evasion and tax avoidance. Members insisted that effective mobilisation of domestic resources and a strengthening of tax systems will be an indispensable factor in achieving the post-2015 framework that will replace the Millennium Development Goals (MDGs).

They expressed as well concerns about the level of corruption and non-transparent public administration that hinder tax revenues from being invested in state-building, public services or public infrastructure.

According to Members, tax resources remain low as a proportion of GDP in most developing countries , making them particularly vulnerable to the tax evasion and avoidance activities of individual taxpayers and companies. This represents a considerable financial loss for developing countries which needs to be addressed.

Action plan to combat tax avoidance and tax evasion in developing countries : the Commission is urged to take concrete and effective measures to support developing countries and regional tax administration frameworks, such as the African Tax Administration Forum and the Inter-American Centre of Tax Administrations, in the fight against tax evasion and tax avoidance, in developing fair, well-balanced, efficient and transparent tax policies.

Members asked the Commission to give good governance in tax matters, and fair, well-balanced, efficient and transparent tax collection, a high place on the agenda in its policy dialogue (political, development and trade), and in all development cooperation agreements, with partner countries.

They also called for:

for information on beneficial ownership of companies, trusts and other institutions to be made publicly available in open-data formats; countries to adopt and fully implement the Financial Action Task Force’s (FAFT) anti-money laundering recommendation.

Publication of tax information : Members invited the European Union and its Member States to enforce the principle that listed or unlisted multinational companies of all countries and sectors, and especially those companies extracting natural resources, must adopt country-by-country reporting (CBCR) as a standard, requiring them to publish, as part of their annual reporting and on a country-by-country basis for each territory in which they operate, the names of all subsidiaries and their respective financial performance , relevant tax information, assets and number of employees, and to ensure that this information is made publicly available. The Commission is called upon to put forward a legislative proposal to amend the Accounting Directive accordingly.

Members underlined that tax exemptions and advantages granted to foreign investors through bilateral tax treaties provide MNCs with an unfair competitive advantage relative to domestic firms, especially SMEs. They also called for the fiscal conditions and regulations under which extractive industries operate to be revised. Members called for the establishment, by the end of 2015, of an internationally agreed definition of tax havens , of penalties for operators making use of them and of a blacklist of countries, including those in the EU, that do not combat tax evasion or that accept it . They called on the EU to support the economic reconversion of those developing countries that serve as tax havens.

They also urged:

Member States with dependencies and territories that are not part of the Union to work with the administrations of these areas towards the adoption of the principles of tax transparency and to ensure that none serve as tax havens; that, when negotiating tax and investment treaties with developing countries, income or profits resulting from cross-border activities should be taxed in the source country where value is extracted or created; the Commission and the Member States to conduct impact assessments of European tax policies on developing countries; the Member States to agree swiftly on a Common Consolidated Corporate Tax Base ; for sanctions to be considered both for non-cooperative jurisdictions and for financial institutions that operate within tax havens; the Commission and the Council, and on partner governments, to ensure that tax incentives do not constitute additional options for tax avoidance; the EIB and the EBRD, and on Member States’ development finance institutions, to monitor and ensure that companies or other legal entities that receive support do not participate in tax evasion and avoidance.

Documents
2015/06/01
   EP - Vote in committee
2015/05/08
   EP - Committee opinion
Documents
2015/05/06
   EP - Amendments tabled in committee
Documents
2015/03/12
   EP - Committee draft report
Documents
2015/03/12
   EP - Committee referral announced in Parliament
2015/03/12
   EP - Referral to associated committees announced in Parliament
2015/01/28
   EP - SCHLEIN Elly (S&D) appointed as rapporteur in DEVE
2014/12/16
   EP - BAYET Hugues (S&D) appointed as rapporteur in ECON

Documents

Activities

Votes

A8-0184/2015 - Elly Schlein - Résolution #

2015/07/08 Outcome: +: 550, -: 57, 0: 23
DE IT FR ES RO NL PT HU BE AT BG CZ SE DK FI SK LT IE HR EL SI LV LU EE PL GB ?? CY MT
Total
75
60
61
44
24
22
19
18
18
17
15
20
17
12
11
11
9
9
9
17
8
6
5
5
45
59
3
5
5
icon: PPE PPE
176

Denmark PPE

For (1)

1
2

Luxembourg PPE

2

Estonia PPE

For (1)

1

Cyprus PPE

1

Malta PPE

2
icon: S&D S&D
163

Netherlands S&D

3

Ireland S&D

For (1)

1

Croatia S&D

For (1)

1

Slovenia S&D

For (1)

1

Latvia S&D

1

Luxembourg S&D

For (1)

1

Estonia S&D

For (1)

1
2

Cyprus S&D

2

Malta S&D

3
icon: ALDE ALDE
63

Romania ALDE

3

Austria ALDE

For (1)

1

Sweden ALDE

2

Denmark ALDE

2

Ireland ALDE

For (1)

1

Croatia ALDE

2

Slovenia ALDE

For (1)

1

Luxembourg ALDE

For (1)

1

Estonia ALDE

3

United Kingdom ALDE

1
icon: GUE/NGL GUE/NGL
49

Netherlands GUE/NGL

3

Portugal GUE/NGL

3

Sweden GUE/NGL

For (1)

1

Denmark GUE/NGL

For (1)

1

Finland GUE/NGL

For (1)

1

Ireland GUE/NGL

3

United Kingdom GUE/NGL

1

GUE/NGL

1

Cyprus GUE/NGL

2
icon: Verts/ALE Verts/ALE
46

Netherlands Verts/ALE

2

Hungary Verts/ALE

2

Belgium Verts/ALE

For (1)

1

Austria Verts/ALE

3

Denmark Verts/ALE

For (1)

1

Finland Verts/ALE

For (1)

1

Lithuania Verts/ALE

For (1)

1

Croatia Verts/ALE

For (1)

1

Slovenia Verts/ALE

For (1)

1

Latvia Verts/ALE

1

Luxembourg Verts/ALE

For (1)

1
icon: ENF ENF
24

Belgium ENF

Abstain (1)

1

Poland ENF

2
icon: NI NI
13

Germany NI

1

France NI

2

Spain NI

1

Hungary NI

2

Poland NI

Against (1)

1

United Kingdom NI

For (1)

1
icon: EFDD EFDD
39

France EFDD

Abstain (1)

1

Czechia EFDD

Against (1)

1

Sweden EFDD

2

Poland EFDD

1
icon: ECR ECR
56

Italy ECR

1

Netherlands ECR

2

Bulgaria ECR

1

Czechia ECR

2

Finland ECR

For (1)

1

Slovakia ECR

2

Croatia ECR

For (1)

1

Greece ECR

For (1)

1

Latvia ECR

For (1)

1
AmendmentsDossier
255 2015/2058(INI)
2015/04/15 ECON 98 amendments...
source: 554.846
2015/05/06 DEVE 157 amendments...
source: 557.129

History

(these mark the time of scraping, not the official date of the change)

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  • date: 2015-05-06T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE557.129 title: PE557.129 type: Amendments tabled in committee body: EP
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  • date: 2015-03-12T00:00:00 type: Referral to associated committees announced in Parliament body: EP
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  • date: 2015-06-09T00:00:00 type: Committee report tabled for plenary, single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A8-2015-0184&language=EN title: A8-0184/2015 summary: The Committee on Development adopted an own-initiative report by Elly SCHLEIN (S&D, IT) on tax avoidance and tax evasion as challenges for governance, social protection and development in developing countries. The Committee on Economic and Monetary Affairs, exercising its prerogatives as an associated committee under Parliament’s Rule 54 of the Rules of Procedure was consulted to give an opinion on the report. Members recalled that tax evasion and avoidance have been identified as major obstacles to the mobilisation of domestic revenue for development by all major international texts and conferences on financing for development. They called on the Commission promptly to put forward an ambitious action plan, in the form of a communication, to support developing countries fighting tax evasion and tax avoidance. Members insisted that effective mobilisation of domestic resources and a strengthening of tax systems will be an indispensable factor in achieving the post-2015 framework that will replace the Millennium Development Goals (MDGs). They expressed as well concerns about the level of corruption and non-transparent public administration that hinder tax revenues from being invested in state-building, public services or public infrastructure. According to Members, tax resources remain low as a proportion of GDP in most developing countries , making them particularly vulnerable to the tax evasion and avoidance activities of individual taxpayers and companies. This represents a considerable financial loss for developing countries which needs to be addressed. Action plan to combat tax avoidance and tax evasion in developing countries : the Commission is urged to take concrete and effective measures to support developing countries and regional tax administration frameworks, such as the African Tax Administration Forum and the Inter-American Centre of Tax Administrations, in the fight against tax evasion and tax avoidance, in developing fair, well-balanced, efficient and transparent tax policies. Members asked the Commission to give good governance in tax matters, and fair, well-balanced, efficient and transparent tax collection, a high place on the agenda in its policy dialogue (political, development and trade), and in all development cooperation agreements, with partner countries. They also called for: for information on beneficial ownership of companies, trusts and other institutions to be made publicly available in open-data formats; countries to adopt and fully implement the Financial Action Task Force’s (FAFT) anti-money laundering recommendation. Publication of tax information : Members invited the European Union and its Member States to enforce the principle that listed or unlisted multinational companies of all countries and sectors, and especially those companies extracting natural resources, must adopt country-by-country reporting (CBCR) as a standard, requiring them to publish, as part of their annual reporting and on a country-by-country basis for each territory in which they operate, the names of all subsidiaries and their respective financial performance , relevant tax information, assets and number of employees, and to ensure that this information is made publicly available. The Commission is called upon to put forward a legislative proposal to amend the Accounting Directive accordingly. Members underlined that tax exemptions and advantages granted to foreign investors through bilateral tax treaties provide MNCs with an unfair competitive advantage relative to domestic firms, especially SMEs. They also called for the fiscal conditions and regulations under which extractive industries operate to be revised. Members called for the establishment, by the end of 2015, of an internationally agreed definition of tax havens , of penalties for operators making use of them and of a blacklist of countries, including those in the EU, that do not combat tax evasion or that accept it . They called on the EU to support the economic reconversion of those developing countries that serve as tax havens. They also urged: Member States with dependencies and territories that are not part of the Union to work with the administrations of these areas towards the adoption of the principles of tax transparency and to ensure that none serve as tax havens; that, when negotiating tax and investment treaties with developing countries, income or profits resulting from cross-border activities should be taxed in the source country where value is extracted or created; the Commission and the Member States to conduct impact assessments of European tax policies on developing countries; the Member States to agree swiftly on a Common Consolidated Corporate Tax Base ; for sanctions to be considered both for non-cooperative jurisdictions and for financial institutions that operate within tax havens; the Commission and the Council, and on partner governments, to ensure that tax incentives do not constitute additional options for tax avoidance; the EIB and the EBRD, and on Member States’ development finance institutions, to monitor and ensure that companies or other legal entities that receive support do not participate in tax evasion and avoidance.
  • date: 2015-07-07T00:00:00 type: Debate in Parliament body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20150707&type=CRE title: Debate in Parliament
  • date: 2015-07-08T00:00:00 type: Results of vote in Parliament body: EP docs: url: https://oeil.secure.europarl.europa.eu/oeil/popups/sda.do?id=25844&l=en title: Results of vote in Parliament
  • date: 2015-07-08T00:00:00 type: Decision by Parliament, 1st reading/single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2015-0265 title: T8-0265/2015 summary: The European Parliament adopted by 50 votes to 57, with 23 abstentions, a resolution on tax avoidance and tax evasion as challenges for governance, social protection and development in developing countries. Parliament recalled that tax evasion and avoidance have been identified as major obstacles to the mobilisation of domestic revenue for development by all major international texts and conferences on financing for development. It called on the Commission promptly to put forward an ambitious action plan, in the form of a communication, to support developing countries fighting tax evasion and tax avoidance. Members insisted that effective mobilisation of domestic resources and a strengthening of tax systems will be an indispensable factor in achieving the post-2015 framework that will replace the Millennium Development Goals (MDGs). It expressed as well concerns about the level of corruption and non-transparent public administration that hinder tax revenues from being invested in state-building, public services or public infrastructure. According to Parliament, tax resources remain low as a proportion of GDP in most developing countries , making them particularly vulnerable to the tax evasion and avoidance activities of individual taxpayers and companies. This represents a considerable financial loss for developing countries which needs to be addressed. Action plan to combat tax avoidance and tax evasion in developing countries : the Commission is urged to take concrete and effective measures to support developing countries and regional tax administration frameworks, such as the African Tax Administration Forum and the Inter-American Centre of Tax Administrations, in the fight against tax evasion and tax avoidance, in developing fair, well-balanced, efficient and transparent tax policies. Parliament asked the Commission to give good governance in tax matters, and fair, well-balanced, efficient and transparent tax collection, a high place on the agenda in its policy dialogue (political, development and trade), and in all development cooperation agreements, with partner countries. It also called for information on beneficial ownership of companies, trusts and other institutions to be made publicly available in open-data formats in order to prevent anonymous shell companies and comparable legal entities from being used to launder money, finance illegal or terrorist activities, conceal the identity of corrupt and criminal individuals, and hide the theft of public funds and profits from illegal traffic and illegal tax evasion. It believes, furthermore, that all countries should at minimum adopt and fully implement the Financial Action Task Force’s (FAFT) anti-money laundering recommendations. Publication of tax information : Parliament invited the European Union and its Member States to enforce the principle that listed or unlisted multinational companies of all countries and sectors, and especially those companies extracting natural resources, must adopt country-by-country reporting (CBCR) as a standard, requiring them to publish, as part of their annual reporting and on a country-by-country basis for each territory in which they operate, the names of all subsidiaries and their respective financial performance , relevant tax information, assets and number of employees, and to ensure that this information is made publicly available, while minimising administrative burdens by excluding micro-enterprises. The Commission is called upon to put forward a legislative proposal to amend the Accounting Directive accordingly. Parliament recalled that public transparency is a vital step towards fixing the current tax system and building public trust. It underlined that tax exemptions and advantages granted to foreign investors through bilateral tax treaties provide MNCs with an unfair competitive advantage relative to domestic firms, especially SMEs. It also called for the fiscal conditions and regulations under which extractive industries operate to be revised . Parliament called for the establishment, by the end of 2015, of an internationally agreed definition of tax havens , of penalties for operators making use of them and of a blacklist of countries, including those in the EU, that do not combat tax evasion or that accept it . It called on the EU to support the economic reconversion of those developing countries that serve as tax havens. It also urged: Member States with dependencies and territories that are not part of the Union to work with the administrations of these areas towards the adoption of the principles of tax transparency and to ensure that none serve as tax havens; that, when negotiating tax and investment treaties with developing countries, income or profits resulting from cross-border activities should be taxed in the source country where value is extracted or created; that impact assessments of European tax policies on developing countries be conducted (Parliament welcomed the Commission’s revised Action Plan on tax evasion and tax avoidance, to be presented in 2015); the Member States to agree swiftly on a Common Consolidated Corporate Tax Base ; for sanctions to be considered both for non-cooperative jurisdictions and for financial institutions that operate within tax havens; the Commission and the Council, and on partner governments, to ensure that tax incentives do not constitute additional options for tax avoidance; the EIB and the EBRD, and on Member States’ development finance institutions, to monitor and ensure that companies or other legal entities that receive support do not participate in tax evasion and avoidance.
  • date: 2015-07-08T00:00:00 type: End of procedure in Parliament body: EP
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  • body: EC dg: url: http://ec.europa.eu/europeaid/ title: International Cooperation and Development commissioner: MIMICA Neven
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Rules of Procedure of the European Parliament EP 150
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  • 2.70 Taxation
  • 6.30 Development cooperation
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activities/2/docs/0/text
  • The Committee on Development adopted an own-initiative report by Elly SCHLEIN (S&D, IT) on tax avoidance and tax evasion as challenges for governance, social protection and development in developing countries.

    The Committee on Economic and Monetary Affairs, exercising its prerogatives as an associated committee under Parliament’s Rule 54 of the Rules of Procedure was consulted to give an opinion on the report.

    Members recalled that tax evasion and avoidance have been identified as major obstacles to the mobilisation of domestic revenue for development by all major international texts and conferences on financing for development. They called on the Commission promptly to put forward an ambitious action plan, in the form of a communication, to support developing countries fighting tax evasion and tax avoidance. Members insisted that effective mobilisation of domestic resources and a strengthening of tax systems will be an indispensable factor in achieving the post-2015 framework that will replace the Millennium Development Goals (MDGs).

    They expressed as well concerns about the level of corruption and non-transparent public administration that hinder tax revenues from being invested in state-building, public services or public infrastructure.

    According to Members, tax resources remain low as a proportion of GDP in most developing countries, making them particularly vulnerable to the tax evasion and avoidance activities of individual taxpayers and companies. This represents a considerable financial loss for developing countries which needs to be addressed.

    Action plan to combat tax avoidance and tax evasion in developing countries: the Commission is urged to take concrete and effective measures to support developing countries and regional tax administration frameworks, such as the African Tax Administration Forum and the Inter-American Centre of Tax Administrations, in the fight against tax evasion and tax avoidance, in developing fair, well-balanced, efficient and transparent tax policies.

    Members asked the Commission to give good governance in tax matters, and fair, well-balanced, efficient and transparent tax collection, a high place on the agenda in its policy dialogue (political, development and trade), and in all development cooperation agreements, with partner countries.

    They also called for:

    • for information on beneficial ownership of companies, trusts and other institutions to be made publicly available in open-data formats;
    • countries to adopt and fully implement the Financial Action Task Force’s (FAFT) anti-money laundering recommendation.

    Publication of tax information: Members invited the European Union and its Member States to enforce the principle that listed or unlisted multinational companies of all countries and sectors, and especially those companies extracting natural resources, must adopt country-by-country reporting (CBCR) as a standard, requiring them to publish, as part of their annual reporting and on a country-by-country basis for each territory in which they operate, the names of all subsidiaries and their respective financial performance, relevant tax information, assets and number of employees, and to ensure that this information is made publicly available. The Commission is called upon to put forward a legislative proposal to amend the Accounting Directive accordingly.

    Members underlined that tax exemptions and advantages granted to foreign investors through bilateral tax treaties provide MNCs with an unfair competitive advantage relative to domestic firms, especially SMEs. They also called for the fiscal conditions and regulations under which extractive industries operate to be revised. Members called for the establishment, by the end of 2015, of an internationally agreed definition of tax havens, of penalties for operators making use of them and of a blacklist of countries, including those in the EU, that do not combat tax evasion or that accept it. They called on the EU to support the economic reconversion of those developing countries that serve as tax havens.

    They also urged:

    • Member States with dependencies and territories that are not part of the Union to work with the administrations of these areas towards the adoption of the principles of tax transparency and to ensure that none serve as tax havens;
    • that, when negotiating tax and investment treaties with developing countries, income or profits resulting from cross-border activities should be taxed in the source country where value is extracted or created;
    • the Commission and the Member States to conduct impact assessments of European tax policies on developing countries;
    • the Member States to agree swiftly on a Common Consolidated Corporate Tax Base;
    • for sanctions to be considered both for non-cooperative jurisdictions and for financial institutions that operate within tax havens;
    • the Commission and the Council, and on partner governments, to ensure that tax incentives do not constitute additional options for tax avoidance;
    • the EIB and the EBRD, and on Member States’ development finance institutions, to monitor and ensure that companies or other legal entities that receive support do not participate in tax evasion and avoidance.
activities/3/docs
  • url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20150707&type=CRE type: Debate in Parliament title: Debate in Parliament
activities/4/docs/0/text
  • The European Parliament adopted by 50 votes to 57, with 23 abstentions, a resolution on tax avoidance and tax evasion as challenges for governance, social protection and development in developing countries.

    Parliament recalled that tax evasion and avoidance have been identified as major obstacles to the mobilisation of domestic revenue for development by all major international texts and conferences on financing for development. It called on the Commission promptly to put forward an ambitious action plan, in the form of a communication, to support developing countries fighting tax evasion and tax avoidance. Members insisted that effective mobilisation of domestic resources and a strengthening of tax systems will be an indispensable factor in achieving the post-2015 framework that will replace the Millennium Development Goals (MDGs). It expressed as well concerns about the level of corruption and non-transparent public administration that hinder tax revenues from being invested in state-building, public services or public infrastructure.

    According to Parliament, tax resources remain low as a proportion of GDP in most developing countries, making them particularly vulnerable to the tax evasion and avoidance activities of individual taxpayers and companies. This represents a considerable financial loss for developing countries which needs to be addressed.

    Action plan to combat tax avoidance and tax evasion in developing countries: the Commission is urged to take concrete and effective measures to support developing countries and regional tax administration frameworks, such as the African Tax Administration Forum and the Inter-American Centre of Tax Administrations, in the fight against tax evasion and tax avoidance, in developing fair, well-balanced, efficient and transparent tax policies.

    Parliament asked the Commission to give good governance in tax matters, and fair, well-balanced, efficient and transparent tax collection, a high place on the agenda in its policy dialogue (political, development and trade), and in all development cooperation agreements, with partner countries. It also called for information on beneficial ownership of companies, trusts and other institutions to be made publicly available in open-data formats in order to prevent anonymous shell companies and comparable legal entities from being used to launder money, finance illegal or terrorist activities, conceal the identity of corrupt and criminal individuals, and hide the theft of public funds and profits from illegal traffic and illegal tax evasion.

    It believes, furthermore, that all countries should at minimum adopt and fully implement the Financial Action Task Force’s (FAFT) anti-money laundering recommendations.

    Publication of tax information: Parliament invited the European Union and its Member States to enforce the principle that listed or unlisted multinational companies of all countries and sectors, and especially those companies extracting natural resources, must adopt country-by-country reporting (CBCR) as a standard, requiring them to publish, as part of their annual reporting and on a country-by-country basis for each territory in which they operate, the names of all subsidiaries and their respective financial performance, relevant tax information, assets and number of employees, and to ensure that this information is made publicly available, while minimising administrative burdens by excluding micro-enterprises. The Commission is called upon to put forward a legislative proposal to amend the Accounting Directive accordingly.

    Parliament recalled that public transparency is a vital step towards fixing the current tax system and building public trust. It underlined that tax exemptions and advantages granted to foreign investors through bilateral tax treaties provide MNCs with an unfair competitive advantage relative to domestic firms, especially SMEs. It also called for the fiscal conditions and regulations under which extractive industries operate to be revised.

    Parliament called for the establishment, by the end of 2015, of an internationally agreed definition of tax havens, of penalties for operators making use of them and of a blacklist of countries, including those in the EU, that do not combat tax evasion or that accept it. It called on the EU to support the economic reconversion of those developing countries that serve as tax havens.

    It also urged:

    • Member States with dependencies and territories that are not part of the Union to work with the administrations of these areas towards the adoption of the principles of tax transparency and to ensure that none serve as tax havens;
    • that, when negotiating tax and investment treaties with developing countries, income or profits resulting from cross-border activities should be taxed in the source country where value is extracted or created;
    • that impact assessments of European tax policies on developing countries be conducted (Parliament welcomed the Commission’s revised Action Plan on tax evasion and tax avoidance, to be presented in 2015);
    • the Member States to agree swiftly on a Common Consolidated Corporate Tax Base;
    • for sanctions to be considered both for non-cooperative jurisdictions and for financial institutions that operate within tax havens;
    • the Commission and the Council, and on partner governments, to ensure that tax incentives do not constitute additional options for tax avoidance;
    • the EIB and the EBRD, and on Member States’ development finance institutions, to monitor and ensure that companies or other legal entities that receive support do not participate in tax evasion and avoidance.
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activities/4/docs
  • url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2015-0265 type: Decision by Parliament, 1st reading/single reading title: T8-0265/2015
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  • url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A8-2015-0184&language=EN type: Committee report tabled for plenary, single reading title: A8-0184/2015
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  • date: 2015-03-12T00:00:00 body: EP type: Committee referral announced in Parliament, 1st reading/single reading committees: body: EP shadows: group: EPP name: RÜBIG Paul group: ECR name: LUCKE Bernd group: ALDE name: MICHEL Louis group: GUE/NGL name: SÁNCHEZ CALDENTEY Lola group: Verts/ALE name: SARGENTINI Judith group: EFD name: CORRAO Ignazio responsible: True committee: DEVE date: 2015-01-28T00:00:00 committee_full: Development (Associated committee) rapporteur: group: S&D name: SCHLEIN Elly body: EP responsible: False committee: ECON date: 2014-12-16T00:00:00 committee_full: Economic and Monetary Affairs (Associated committee) rapporteur: group: S&D name: BAYET Hugues
  • date: 2015-07-06T00:00:00 body: EP type: Indicative plenary sitting date, 1st reading/single reading
committees
  • body: EP shadows: group: EPP name: RÜBIG Paul group: ECR name: LUCKE Bernd group: ALDE name: MICHEL Louis group: GUE/NGL name: SÁNCHEZ CALDENTEY Lola group: Verts/ALE name: SARGENTINI Judith group: EFD name: CORRAO Ignazio responsible: True committee: DEVE date: 2015-01-28T00:00:00 committee_full: Development (Associated committee) rapporteur: group: S&D name: SCHLEIN Elly
  • body: EP responsible: False committee: ECON date: 2014-12-16T00:00:00 committee_full: Economic and Monetary Affairs (Associated committee) rapporteur: group: S&D name: BAYET Hugues
links
other
    procedure
    dossier_of_the_committee
    DEVE/8/02906
    reference
    2015/2058(INI)
    title
    Tax avoidance and tax evasion as challenges for governance, social protection and development in developing countries
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