Brexit Britain must not resile from EU anti-tax avoidance measures, Labour MEPs warned as the European Parliament voted today for greater tax transparency in Europe, including widening the scope of public country-by-country reporting.
Neena Gill MEP, Labour’s European Parliament spokesperson on taxation, said:
“Today’s vote is a big advance in the fight against tax avoidance. Making companies publicly declare where they make their profits, how much they earn, and where they pay their tax will ensure companies pay their fair share of tax in the correct jurisdiction.
“By sharing tax information across EU countries, it becomes harder for companies to shift profits to low- or no-tax jurisdictions or to avoid paying tax altogether. It is currently far too easy for multinational companies to move their profits between countries to avoid tax - this is completely unfair on the thousands of small businesses in Britain who do the right thing and pay their full share.
“It is vital that after Brexit the UK keeps EU anti-tax avoidance measures like those voted for today, and does not become some kind of lawless tax haven in which companies get away with paying little or no tax.”
ENDS
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Notes to Editors
1. The proposals will force companies with a turnover of at least €750 million (£660m) to disclose information such as their assets, employees and the amount of taxes paid in every country they do business. This includes information about their subsidiaries established outside the EU including in tax havens - hugely widening the scope of the law.
2. There will also be sanctions in case of non-compliance.
3. Negotiations will now take place with the Council of ministers.