07 May 2013

Commissioner Šemeta: Tax evasion and avoidance - Time for concrete and ambitious actions

The priorities are clear, and as I understand, are shared by your Committee: enhance information exchange within the EU, improve mutual assistance between Member States, tackle the mismatches that evaders exploit, and clamp down on tax havens. In fact, our Action Plan contains the full spectrum of measures needed to create a much more hostile environment for fraudsters and evaders across Europe. Some measures are subject to new proposals from the Commission: these will come in the near future. But most of them are already on the table of the Council. They must be agreed and applied by our Member States without delay. We have heard many ambitious words on fighting tax evasion in recent weeks. On the 14 May, EU Finance Ministers will have the chance to turn these words into action – and there is no excuse not to do so.

Second, it is time for stronger coordination at European Level. For me, coordination is the linchpin, which will determine the success of our efforts to combat fraud and evasion. Tax evaders thrive on the mismatches and misgivings that exist cross-border. It is only by coming together that we will finally bring this problem down.

Up to now, I'm afraid that the appetite for full and unreserved coordination has been lacking amongst the Member States. And as a result, fraudsters and evaders have been able to use our Single Market as a playground for their activities. Moreover, Member States' inclination to put national tactics before the EU approach has diminished our collective impact on the international stage.

We should not forget that the EU is a global forerunner in tax good governance. We've been ahead of the crowd on issues like automatic exchange of information and fair tax competition. So it is really a pity that we lacked the strong and coordinated stance to push these standards more forcefully at global level. This has to change – and I believe that it will.

I am happy that the current Presidency has showed genuine interest and has worked in the Council to coordinate positions on key tax evasion files so far. It is essential to progress in the EU but also globally, in view of the forthcoming discussions in the G20, notably on fighting base erosion and profit shifting.

I would like to remind here that the CCCTB could substantially contribute to reducing excessive tax planning and avoidance schemes. Discussions in the Council on this file must pick up pace and move forward as quickly as possible.

On our side, we have recently created a platform for tax good governance, to ensure coherent and decisive actions by Member States. It is only by acting together as a Union that we will be a model of good governance at home and a powerful driver for these same standards to be applied internationally.

My third and last point is that there is no exclusivity in the fight against tax fraud and evasion. The task is huge. Fraudsters and evaders have no borders, nor do they lack resources and ideas. As a consequence, any initiative, be it at national, EU or international level, which pushes things forward more quickly, or which increases ambition on what must be achieved, is very welcome.

In this context, the pilot project recently launched by five Member States could accelerate our collective move towards more automatic exchange of information and greater transparency. In this respect, it is something I can very much support as there is clearly room for more ambition in this field.

We must address the need to bring forward and extend the wider scope of automatic exchange of information, beyond what is currently agreed. We must proceed with ambition – but at the same time we must do so within a community framework. Why? Because a Single Market needs a single approach. We need it to ensure solidarity between all Member States, so that one nation's tax policies are not undercut by another's. We need it to ensure a level playing field for businesses, so that one company does not end up paying for another's abusive tax planning. And we need it to create a fairer environment for our citizens whom are carrying a heavy tax burden due to the crisis. You can be sure that the Commission will fully play its role and will shortly propose how to strengthen the EU framework for automatic exchange of information...

Next week's ECOFIN, and the Summit that follows, offer our Member States a unique opportunity. They will have the chance to take decisions which will help recover vast sums to national treasuries and rebalance the tax burden for citizens. Decisions which will be remembered as a major turning point in how we deal – as a Union – with tax evasion and those that encourage it. Finally, decisions which will safeguard Member States' right to implement the tax policies that they need, in an environment of fair tax competition.

Full speech

President Barroso calls for progress on energy and tax fraud and evasion, 8.5.13

Video: President Barroso at State of the Union Conference in Florence, 9.5.13

Commission Background Note

See also Rapporteur Mojca Kleva Kekuš Report on Fight against Tax Fraud, Tax Evasion and Tax Havens, 3.5.13

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