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The European Commission has become the latest major institution to weigh in
on corporate tax avoidance across borders, with a new plan
for a single corporate taxation rulebook that would make it harder for
companies to shop around for a lower tax rate in Europe.
The plan to effectively unify corporate tax rates across the bloc faces
significant hurdles before it will be finalized — not least the fact that
some of the countries in Europe act as tax havens, offering sweetheart
deals to attract big business (see ICIJ’s Lux Leaks
and Paradise
Papers investigations, for example).
But the announcement from Europe is one of a number of proposals in
recent months — including plans from the new U.S. administration, and
discussions at the OECD, G7 and more — that point towards corporate tax
rates as a key issue in the global economy right now, particularly as
countries seek to recover financially from the damage wrought by the
COVID-19 pandemic.
“We cannot properly support recovery with a system that allows hundreds
of billions euros in potential tax revenues to be lost because of evasion
and fraud,” Irene Tenagli, chair of the European Parliament’s Economic
and Monetary Affairs Committee, said at a
press event.
That this is the second newsletter in a row that we’re talking about
corporate tax avoidance (ICYMI, last week’s update on a court ruling
against one of the Lux Leaks whistleblowers can be
found here) is no mistake. Regular ICIJ readers will know
this is a topic that has been on our radar for a long time, and we’ll be
watching with interest as these discussions progress — and, of course,
will keep you informed with the latest news as we have it. Thanks for
subscribing!
TECH
EVOLUTION
As ICIJ continues to mark five years since we published the
groundbreaking Panama Papers investigation, we take a look back at how
our tech toolkit has changed over the past decade and how being at the cutting
edge of technology development has helped make the
impossible possible for our huge teams of reporters.
REGISTER
NOW
Join us for a special, live discussion marking ten years since the Arab
Spring uprisings. We’re bringing together some of our partners from the
Middle East and North Africa for a roundtable discussion about journalism
in the region, and what has (and hasn’t) changed since then. Register
now for the June 2 event.
THROWBACK
TEDX TALK
If you’re interested in how multinational corporations avoid millions and
billions in taxes by routing profits through low-tax countries, check out
this TEDx talk from ICIJ member Simon Bowers, as he breaks down exactly
where his money went after he bought a new pair of Nike
sneakers.
Thanks for
reading!
Hamish Boland-Rudder
ICIJ's online editor
P.S. If you've enjoyed our coverage this week, remember to
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