It’s clear that we need international rules to keep corporations in check and cross-border action to tackle their tax-dodging.
Following the revelations about industrial scale tax avoidance being encouraged in Luxembourg, Green MEPs launched a campaign to have a special investigation. Through this route we have held corporations and the accountants who aid and abet their tax avoidance to account. While we still have a long way to go, we are making significant headway which would not be possible if this were to be tackled at the national level where corporations can convince governments to engage in a race to the bottom.
The UK government has argued for the benefits of tax competition rather than co-operation and has cut corporate tax rates so that they are now one of the lowest in the EU. This encourages the race to the bottom on tax so that we cannot pay for our public services.
Fiat and Starbucks must each pay up to €30m in tax repayments after action by Margrethe Vestager, EU competition commissioner in October 2015
You can find out more about the Greens’ action against corporate tax avoidance in Europe here: www.act-or-go.eu/en/