"The tax action plan is a further step in the right direction but more needs to be done," say S&D Euro MPs

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S&D Euro MPs today welcomed the tax action plan proposed by the Commission as "a further step in the right direction". They called on the EU governments to act swiftly so taxes are paid where profits are generated and ensure tax transparency in general.

S&D Group spokesperson on economic and monetary affairs and European Parliament rapporteur on the special tax committee Elisa Ferreira said:

"The Commission has done a fine job in proposing this plan, but now we need results. These proposals are not enough, and must therefore trigger a corresponding and determined political action at the level of the Council of Ministers.

"The Council cannot hide behind the unanimity rule to perpetuate a situation of privilege in some countries. Also, at the European Commission, there can be no doubt about the determination of its members to put an end to the present unfair and damaging tax dodging.

"The Commission must ensure, at the highest level, a real and effective coordination against harmful tax practices among Commissioners Johnathan Hill (internal market), Pierre Moscovici (tax), Margarethe Vestager (state aid), Valdis Dombrovskis (Eurozone) and Vera Jourová (justice) in their respective portfolios."

S&D Group spokesperson on the special tax committee Peter Simon added:

"We welcome that the Commission is giving a new impetus to fair corporate taxation in the EU. The current systems in the EU haven't moved with the times. In view of the current opposition of some member states, it is pragmatic to define in a first step, what multinational companies can offset from tax and then in a second step to address the distribution of profits among the member states.

"But we expect that this second step will be taken soon. For this, we give our full support to the commissioner for taxation Pierre Moscovici.  In the fight against aggressive tax planning, we need an effective mechanism, which ensures that companies cannot understate their profits in certain countries and that profits are being taxed where the economic activity takes place".

S&D Euro MP Anneliese Dodds concluded:

"While today's announcement is a good step forward, the Commission still seems to be dragging its feet on the introduction of country-by-country reporting.

"Full public reporting of profits has now been called for by the European Parliament, civil society organisations, businesses themselves and millions of citizens across Europe as one of the best ways to fight tax evasion and aggressive tax avoidance – and the Commission's response is nothing more than to launch a consultation.  

"Commissioner Hill, whose directorate has the lead responsibility for this area, should listen to the voices from across Europe and take action on this now, not at some distant point in the future.  The people of Europe deserve better."