EU denounces ‘shocking’ Paradise Papers revelations

The European Union on Monday denounced as “shocking” revelations
on the way top companies and dignitaries, including Britain’s Queen
Elizabeth II, avoid taxes using offshore wealth hubs.

EU finance ministers meeting for regular talks in Brussels are
due to discuss the practice on Tuesday after a trove of leaked
documents exposed the great lengths the global elite will go to
avert paying a fair tax.

The findings have emerged as part of the Paradise Papers
released late Sunday by the US-based International Consortium of
Investigative Journalists (ICIJ), which was behind the similar
Panama Papers made public last year.

“This new scandal shows once again that some companies and rich
individuals are ready to do anything to not pay tax,” said European
Economics Affairs Commissioner Pierre Moscovici ahead of the two
days of talks.

“In light of these shocking revelations, I call on member states
to rapidly adopt a European tax haven blacklist, as well as other
dissuasive measures,” he said.

Much as with the Panama Papers report and LuxLeaks, the latest
leak also exposes the secret ways the rich and multinationals, with
the help of accountancy firms, shift profits across the globe to
drastically cut tax.

Perfectly legal, these methods helped divert billions in profit
from the tax man, using well-established wealth hubs such as
Luxembourg, the British Virgin Islands and Switzerland.

EU competition chief Margrethe Vestager, who has cracked down on
EU countries making illegal tax breaks to Apple and Amazon, lauded
the journalists who made the latest revelations.

“Congratulations and thanks to ICIJ for all the work done on
Paradise Papers. It enables the work against tax avoidance, for
transparency,” said Vestager in a tweet.

Despite the tough talk from Brussels, Europeans have struggled
to agree on the basis of an EU-wide tax haven blacklist.

Britain, Malta and other smaller EU nations are reluctant to
include zero or near-zero corporate tax rates as one of the
criteria to land on the EU’s blacklist.

The EU ministers are due to bridge their differences and draw up
an official list of unwanted tax havens in December, whittling down
an initial list of 92 countries finalised last year.

In the run-up to that final list, EU officials are sending
letters to the 92 countries asking them to detail their tax
policies for evaluation.

AFP

The European Union on Monday denounced as “shocking” revelations
on the way top companies and dignitaries, including Britain’s Queen
Elizabeth II, avoid taxes using offshore wealth hubs.

EU finance ministers meeting for regular talks in Brussels are
due to discuss the practice on Tuesday after a trove of leaked
documents exposed the great lengths the global elite will go to
avert paying a fair tax.

The findings have emerged as part of the Paradise Papers
released late Sunday by the US-based International Consortium of
Investigative Journalists (ICIJ), which was behind the similar
Panama Papers made public last year.

“This new scandal shows once again that some companies and rich
individuals are ready to do anything to not pay tax,” said European
Economics Affairs Commissioner Pierre Moscovici ahead of the two
days of talks.

“In light of these shocking revelations, I call on member states
to rapidly adopt a European tax haven blacklist, as well as other
dissuasive measures,” he said.

Much as with the Panama Papers report and LuxLeaks, the latest
leak also exposes the secret ways the rich and multinationals, with
the help of accountancy firms, shift profits across the globe to
drastically cut tax.

Perfectly legal, these methods helped divert billions in profit
from the tax man, using well-established wealth hubs such as
Luxembourg, the British Virgin Islands and Switzerland.

EU competition chief Margrethe Vestager, who has cracked down on
EU countries making illegal tax breaks to Apple and Amazon, lauded
the journalists who made the latest revelations.

“Congratulations and thanks to ICIJ for all the work done on
Paradise Papers. It enables the work against tax avoidance, for
transparency,” said Vestager in a tweet.

Despite the tough talk from Brussels, Europeans have struggled
to agree on the basis of an EU-wide tax haven blacklist.

Britain, Malta and other smaller EU nations are reluctant to
include zero or near-zero corporate tax rates as one of the
criteria to land on the EU’s blacklist.

The EU ministers are due to bridge their differences and draw up
an official list of unwanted tax havens in December, whittling down
an initial list of 92 countries finalised last year.

In the run-up to that final list, EU officials are sending
letters to the 92 countries asking them to detail their tax
policies for evaluation.

AFP