'Times are changing, pay your taxes', euro zone chief tells corporations
'Times are changing, pay your taxes', euro zone chief
tells corporations
By Francesco Guarascio and Jason Hovet September 10, 2016
BRATISLAVA (Reuters) - Multinational companies should
refrain from tax-avoidance practices and pay their fair share, the head of euro
zone finance ministers said on Saturday in a new endorsement of the European
Union's fight against tax-dodging.
In the wake of the 'Panama Papers' revelations of
widespread tax-avoidance practices, Brussels has toughened up its drive for fairness
by tightening controls and adopting stricter rules.
The recent shock multi-billion euro tax demand on Apple
was part of that trend as the EU also drafts plans for a common corporate tax
base and a single European blacklist for tax havens.
"My message to those companies is you are fighting
the wrong battle. You have to move on. Times are changing," the head of
the eurogroup and Dutch Finance Minister Jeroen Dijsselbloem told reporters on
arriving at a meeting of EU finance ministers in Bratislava.
"You need to pay your taxes in a fair way. Part of
that would be in the U.S., part of that would be in Europe. So get ready to do
that," Dijsselbloem added.
The Commission, which is in charge of protecting market
competition in Europe, is investigating multinationals' tax arrangements in
several EU countries to assess whether, by lowering corporations' tax bills,
illegal state aid may have been given.
Online retailer Amazon.com Inc and hamburger group
McDonald's Corp face European Commission probes over taxes in Luxembourg, while
coffee chain StarbucksCorp has been ordered to pay up to 30 million euros ($33
million) in back-taxes to the Dutch state.
The Netherlands has appealed against the Commission's
decision, and Ireland did the same in the Apple case, fearing it could
undermine the country's long-established policy of attracting multinationals
with low taxes.
European Commissioner Pierre Moscovici plans to unveil
proposals in the coming weeks on a common tax base for multinationals operating
in the EU, telling reporters the initiative was about the tax base rather than
rates, which will remain in the hands of member states.
He also said the Commission will move forward with plans
to align taxes on ebooks and online press with paper publications, in line with
earlier announcements.
German Finance Minister Wolfgang Schaeuble welcomed the
efforts while EU Commission Vice-President Jyrki Katainen said new rules were
needed to eliminate mismatches and loopholes between member states' tax systems
that companies exploit.
"What is clear is that with every new case of unfair
tax practise or abuse, public frustration grows," he told a news
conference at the conclusion of the summit.
Ministers at the meeting also discussed a paper presented
by the Slovak presidency of the EU calling for more tax certainty for
multinationals. It aims to step up cooperation among EU states and also make
companies' tax bills more predictable.
(Additional reporting by Shadia Nasralla in Bratislava;
Editing by Helen Popper)
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