Strasbourg, 27.04.2012 – The Parliamentary Assembly of the Council of Europe (PACE) has demanded a series of steps to end what it calls “massive tax avoidance, evasion and fraud” caused by secrecy jurisdictions, tax havens and offshore financial centres.
Adopting a resolution based on a report by Dirk van der Maelen (Belgium, SOC), the parliamentarians said tackling global distortions due to harmful or predatory tax practices – including bank secrecy, lack of transparency and effective public oversight, regulatory dumping, predatory tax arrangements and abusive accounting techniques within multinational companies – was “a moral duty” because they drain public finances and cause serious harm to the public interest.
“Thanks to growing public outcries, international co-operation has intensified, notably at the G20 level, to tackle the root problems concerning tax havens […]. However, the situation is far from satisfactory, and further progress is needed to close legal gaps and loopholes,” the Assembly said.
Among other things, the Assembly called for:
· stepping up pressure over secrecy jurisdictions and tax havens identified in the report to phase out fiscal bank secrecy
· country-by-country reporting by multinationals wherever they operate, across all business sectors
· a ban on anonymous accounts, off-balance-sheet bookkeeping and bearer shares
· disclosure of the ultimate beneficial ownership of all business entities, notably trusts and funds
· harmonisation of tax practices across Europe and beyond
· moving towards the automatic exchange of all tax information
· ending artificial tax minimisation techniques “which may be legal but not ethical”
The parliamentarians concluded: “Sound tax systems are the cornerstone of public finances: they underpin democratic governance, state authority, macroeconomic stability and social cohesion.”
If I might say so, another campaign win.
It takes a few brave people prepared to be unpopular or ridiculed to challenge the orthodoxy. When the number begins to build, then many more find the confidence and courage to join.
We are seeing some people in the European parliament and the Council of Europe who might be finding their courage.
They also need a clear analysis and plan. The TJN seem to have given them that.
But the forces of the vested interests are very strong and will be prepared to use dirty tactics to safeguard their privileges.
These are exciting developments but a long hard struggle lies ahead. What, in your opinion Richard, would the best way for ordinary people to support this struggle?
Ian
I deal with your last point – as it is the key one – and reflecting on it led to my delay in approving your comment
The answer is threefold.
First – support organisations that demand tax justice. TJN – largely a network of experts – could be appropriate – but usually we expect some work commitment in exchange. That’s how its odd structure ahs worked. There are others though – development agencies for example.
Second, keep commenting. I assure you – I appreciate support! So does TJN.
Third – become a campaigner. Tweet, write to papers, phone in to radio stations, do what you can. Write to MPs. Support 38 degrees campaigns and so on. That is the most impoortant thing possible! Even create your own think tank to support your view – there’s nothing to stop you!
But make noise is the best course of action
Best regards
Richard
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