Sunday

28th May 2023

MEPs push for stronger tax probe, threaten court action

  • MEPs won't rule out going to the European Court of Justice to get a stronger committee on tax rulings (Photo: Alfonso Salgueiro)

A special European Parliament committee meant to examine tax breaks for multinationals is being stonewalled at every turn, prompting some MEPs to consider taking the legal route to get real powers.

Parliament president Martin Schulz is being blamed for the committee's weak mandate.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

Fabio de Masi, a German MEP from the United Left, told this website Schulz helped weaken the inquiry, tasked to look into how governments cut secret deals with companies to avoid paying taxes.

The committee, headed by French centre-right MEP Alain Lamassoure, launched its probe in February into tax rulings among the 28 member states following last year’s "LuxLeaks" revelations.

But De Masi said Schulz should have allowed a broader debate in the plenary on having a much stronger committee.

“Schulz never handed the decision on the mandate on the inquiry committee to the plenary, we think that this is a violation of our parliamentary rights and we are currently considering juridical steps and measures,” he noted.

He described the committee as “toothless”, saying it's unable to get the documents it needs to produce a report and subsequent legislative recommendations.

The Greens, for their part, had managed to gather enough signatures to formally ask for an inquiry committee into tax evasion but were outmaneuvered by some of the big party leaders, who opted for the weaker special committee.

“We regard the question of the inquiry committee as legally unsettled. So this means that the original demand has never been officially declined,” said German Green Sven Giegold.

He added that they will first try to “work constructively in the special committee” but won’t rule out forcing a formal decision on a broader investigation committee.

“If this is declined, it can be enforced through the courts,” he said.

Stonewalling

So far the committee has little to show for its efforts.

On Monday, they met Luxembourg’s finance minster as part of the second leg of their six-member state tour.

The Grand Duchy hit the headlines last year when an journalistic investigation exposed secret tax deals with some 340 multinationals.

De Masi said the Duchy continues to issue rulings and is also introducing a new measure, called a “fondation patrimoniale”, that will allow wealthy individuals from other member states to avoid paying inheritance tax.

“This is for example one measure they will now introduce and the only thing they said is that they will wait for a response from the commission whether this is line with the [EU] anti-money laundering directive,” he said.

The Luxembourg authorities refused to give the committee a list of rulings dating from 1991 plus other documents.

A meeting with Luxembourg’s Marius Kohl, who had rubberstamped some of the tax rulings, was also turned down.

On Wednesday, liberal German MEP Michael Theurer expressed his frustration at the lack of progress and the tight deadline.

“The question will be if the committee will have time to delve into the past, will it be able to go right to 1991, because our experience in Luxembourg shows just how difficult that is,” he told reporters in Strasbourg.

Aside from ministers in its six-member state tour, almost everyone appears to have ignored it. So far only Estonian, Latvian, Portuguese, and Polish ministers have agreed to meet the MEPs.

One parliament source close to the issue said Latvia’s minister, whose meeting is set for the end of May, has refused to speak in English.

“Concerning the documents, as far as I know we have only the documents from commissioner Vestager [the EU competition chief,], everything else we are still waiting,” said the contact.

The delegation from the committee will be visiting Switzerland next, then Ireland, the Netherlands, and the UK.

Juncker denies role in tax scams

EU Commission chief Juncker says he had nothing to do with Luxembourg's sweetheart tax deals in his time as PM of the microstate.

Investigation

Europe's missing mails

How the EU Commission and national governments delete official emails and text messages — creating areas of decision-making without oversight and control.

MEPs urge Orbán to act to unblock EU money

MEPs tasked with controlling spending of EU funds said they continued to have "great concerns" on how Hungary is handling EU money and called on prime minister Viktor Orbán's government to implement the necessary reforms to unblock suspended EU funds.

MEPs push for world's toughest rules on AI

The aim is "to avoid a controlled society based on AI, instead to make AI support more freedom and human development, not a securitarian nightmare" a key MEP on the file said.

Latest News

  1. How the EU's money for waste went to waste in Lebanon
  2. EU criminal complicity in Libya needs recognition, says expert
  3. Europe's missing mails
  4. MEPs to urge block on Hungary taking EU presidency in 2024
  5. PFAS 'forever chemicals' cost society €16 trillion a year
  6. EU will 'react as appropriate' to Russian nukes in Belarus
  7. The EU needs to foster tech — not just regulate it
  8. EU: national energy price-spike measures should end this year

Stakeholders' Highlights

  1. International Sustainable Finance CentreJoin CEE Sustainable Finance Summit, 15 – 19 May 2023, high-level event for finance & business
  2. ICLEISeven actionable measures to make food procurement in Europe more sustainable
  3. World BankWorld Bank Report Highlights Role of Human Development for a Successful Green Transition in Europe
  4. Nordic Council of MinistersNordic summit to step up the fight against food loss and waste
  5. Nordic Council of MinistersThink-tank: Strengthen co-operation around tech giants’ influence in the Nordics
  6. EFBWWEFBWW calls for the EC to stop exploitation in subcontracting chains

Stakeholders' Highlights

  1. InformaConnecting Expert Industry-Leaders, Top Suppliers, and Inquiring Buyers all in one space - visit Battery Show Europe.
  2. EFBWWEFBWW and FIEC do not agree to any exemptions to mandatory prior notifications in construction
  3. Nordic Council of MinistersNordic and Baltic ways to prevent gender-based violence
  4. Nordic Council of MinistersCSW67: Economic gender equality now! Nordic ways to close the pension gap
  5. Nordic Council of MinistersCSW67: Pushing back the push-back - Nordic solutions to online gender-based violence
  6. Nordic Council of MinistersCSW67: The Nordics are ready to push for gender equality

Join EUobserver

Support quality EU news

Join us