efa meps march 2018.jpg
Ian Hudghton (Greens/EFA) – I welcome the recognition in this report of the fact that Member States remain fully competent to set their respective corporate tax rates. The Report also points out that the current opacity in the international tax system allows MNCs to avoid taxes, circumvent national tax laws and shift their profits to the most favourable location for minimising the payment of tax. I am aware that there may be a need to restore the link between taxation and economic substance, and to ensure that taxes are paid in the countries where actual economic activity and value creation takes place. Our constituents should not be the ones to suffer from austerity policies while MNCs are able to avoid contributing to the Member States through fair taxation. This Report offers many constructive suggestions aimed at reducing the scope for blatant tax avoidance, but I cannot support Amendments and Paragraphs which seek to enhance the EU's role over Member States tax policies and rates. I recognise the potential benefits which could arise from increased transparency and the sharing of information between Member States but I remain of the view that the Member States should continue to exercise full competence in this field.