Anders Dahlbeck, ActionAid Tax Policy Adviser, responding to a new corporate tax reform package proposed today by the European Commission, said:
“These new proposals simply don’t go far enough. Loopholes, tax havens and the race to the bottom on corporate tax rates are hurting people in the world’s poorest countries as well as in Europe. Yet this package will not tackle tax avoidance and falls short of what is needed.”
“A common corporate tax system could be a positive step but it is a mistake for the EU to propose a two-step introduction. The risk is that we may never get to the second step and the first one will not provide the solutions we need. To really curb the race to the bottom, the common tax base would need to be backed up by a minimum tax rate.
“The essential first step for any effective reform to stop the race to the bottom on tax rates and tackle tax dodging is transparency. Europe should require big companies to publish how much tax they pay in every country where they do business, including in tax havens and in the world’s poorest countries. Public country-by-country reporting can wait no longer.”