THE Greens-EFA Group in the European Parliament is calling a press conference for 16.00, 14 January, Strasbourg, to announce that it has successfully collected the 188 signatures necessary to trigger the parliamentary inquiry into the allegations of tax competition between member states.
Molly Scott Cato, Green member of the Parliament's Tax Working Group, said:
"Our ability to gain the support of 25% of the whole parliament makes it clear how seriously our colleagues take this issue. We now look to the Conference of Parliament to forward to the plenary without delay our draft mandate for an inquiry committee. The revelations arising from the Luxembourg Leaks makes it clear that there have been breaches of the Treaty in that country, but the aim of our inquiry is to broaden the investigation so that we can explore how widely this illegal practice has spread."
The basis for the Green-EFA call for the inquiry is the allegation that there have been contraventions of the European Treaty, which requires that member states co-operate with each other. The leaks of information from PWC in Luxembourg make it clear that, far from co-operating, member states have been actively engaged in competition to reduce their tax rates to attract investment from multinational corporations. The inquiry can also investigate whether there have been contraventions of obligations to provide all necessary documents to ensure fair competition within the single market.
Molly Scott Cato concluded:
"This beggar-thy-neighbour approach to taxation policy within what is allegedly a single market works against the interests of our citizens and only benefits powerful multinational corporations. Our call is for tax justice: that the costs of funding the infrastructure of our societies should fall most heavily on those most able to contribute. As a result of decades of tax corruption and tax dumping the reverse has come to be the case."
Notes: Contravention is of Article 107(1) of the European Treaty, which requires that member states co-operate with each other; and Council Regulation (EC) No 659/1999 of 22 March 1999 laying down detailed rules for the application of Article 108 TFEU, regarding the obligation to cooperate and provide all necessary documents.