Money laundering and tax evasion cannot be tolerated
14 July, 2017
Zero-rate jurisdictions like the Bahamas and Bermuda should be, in Germany’s view, pressured into not allowing companies to avoid paying tax, and we are in favour of transparency and improving the code of conduct to prevent unfair tax competition. This was asserted by Wolfgang Schauble, German finance minister since 2009, who took part on 11 July in a discussion on the follow-up of the Panama Papers held by the EP Committee of Inquiry on money laundering, tax avoidance and tax evasion (PANA). Together with him at the debate were finance ministers Paschal Donohoe from Ireland, Pier Carlo Padoan from Italy and Jeroen Dijsselbloem from the Netherlands.
According to PANA Committee Chair Werner Langen, German MEP from EPP Group, “more transparency, including an EU-wide Common Corporate Consolidated Tax Base, would help national governments fight the loss of up to €70 billion annually from tax avoidance.”
Minister Schauble recalled that in the wake of the revelations about mailbox companies in Panama, the Federal government made a proposal to Member States and called on Panama to cooperate with tax authorities and to participate in automatic exchange of financial information. He stressed as well that reporting by Code of Conduct Group for Business Taxation to ECOFIN should be expanded. We are preparing Customers’ register and we have a new law dated 23 June on preventing tax avoidance and tax evasion, he specified, urging that “money laundering and tax evasion cannot be tolerated.”