Commission chief Jose Manuel Barroso unveiled his work programme for next year at the European Parliament in Strasbourg on Tuesday (15 November), calling it a "blueprint for stability and growth."
Out of the list of 129 separate projects for new EU laws and assorted non-binding strategy papers and recommendations, he highlighted the publication of a commission Annual Growth Strategy; measures to put an end to tax havens and a "quick reaction mechanism" against VAT fraud; as well as laws to end fiddles in the disbursement of EU funds.
The reported continued:
According to commission papers, the tax-haven document, due in autumn 2012, will not be legally binding. But it will aim to "develop a reinforced strategy to protect the EU against the challenges of unco-operative jurisdictions outside the EU."
Also welcome was the report that:
EU countries will next year be asked to create a pan-EU "framework" for freezing the funds of people involved in terrorist activity and build a joint electronic register to screen financial transactions for terrorist groups on the model of the US Terrorist Finance Tracking Programme.
The EU haw an impressive record in tackling tax haven abuse: in my opinion it has been the most effective agency in the world in doing so. Its European Union Savings Tax Directive is flawed, but is making progress, and even as it stands is a beacon for the importance of automatic information exchange whilst its EU Code of Conduct on Business Taxation has been enormously helpful in tackling tax abuse both on and offshore and is pushing the Crown Dependencies steadily out of business.
The new development looks like an update on the Code of Conduct on Business Taxation. That is also not law, but it has been extraordinarily effective. As such I warmly welcomne this move.
In addition, the moves on terrorist financing simply won't work without bettr company registries and registries of trusts. Might they be on the way
Thanks for reading this post.
You can share this post on social media of your choice by clicking these icons:
There are links to this blog's glossary in the above post that explain technical terms used in it. Follow them for more explanations.
You can subscribe to this blog's daily email here.
And if you would like to support this blog you can, here:
Buy me a coffee!
Meanwhile the Isle of Man government, dominated by the all-powerful finance industry, continues to proclaim its transparency and the harmless nature of its activities:
“THE island has been named as one of only eight jurisdictions in the world hailed for the highest standards in tax transparency in a report delivered to the G20 summit in Cannes.
And in another report published on the eve of last week’s Cannes summit, the island secured a ‘white list’ placing for its tax co-operation and information exchange.
Chief Minister Allan Bell MHK welcomed the move, saying: ‘I am delighted that the Isle of Man’s resolute commitment to co-operation with international standards has been recognised.’ ”
In this they are aided and abetted by its tame media, happy to cite without comment the distorted views of Westminster MP Mark Field:
“A member of the United Kingdom parliament is defending the contribution offshore centres make to the British economy.
Writing on the Financial Director website, London and Westminster’s Conservative member Mark Field says jurisdictions such as the Isle of Man, Jersey and Guernsey have been taking unfair criticism in the UK.
He says many small centres are stable, well-regulated and neutral jurisdictions which provide liquidity and investment opportunities to Britain.
Mr Field also dismisses claims the offshores engage in harmful tax practices, saying the The Foot Review showed that’s not the case.
And he says the Isle of Man is currently among the highest rated jurisdictions globally for complying with international standards.”
Well, if Mark Field MP says so it must be true, mustn’t it …?
This same EU report also comments on the “current dispute between the UK and Germany over London’s threat to veto a tax on financial transactions”.
“What we are looking for is the fair contribution of the financial industry back to society. If we look at how much society helped the sector in terms of of credit guarantees – the governments had to offer €4.6 trillion – should we tax labour, should we tax consumption, should we again transfer the burden to citizens? We in the commission don’t think so.”
France also supports the proposed tax on financial transactions (as does Oxfam – the Robin Hood tax). Can someone explain why the UK is so vigorously opposed to this?
Fear of the power of the City of London
That is it
OK. That’s what I thought.
The situation is intolerable. When even the right-wing Sarko says with (apparent) passion that it is “financièrement indispensable et moralement incontournable” (though no doubt he can say that with impunity, knowing full well that countries like the USA, UK, China and others will never agree).
It just dealt with LVCR abuse so that’s another plus! Gets 10 out of 10 from me!