Resolution on the call for a measurable and binding commitment against tax evasion and tax avoidance in the EU

The European Parliament adopted a resolution on the call for a measurable and tangible commitment against tax evasion and tax avoidance in the EU. The resolution was tabled by the S&D, EPP, and ALDE groups. Noting that an estimated EUR 1 trillion in potential tax revenue was lost to tax fraud, evasion and avoidance every year in the EU, without any tangible measures being taken in response, Parliament called on Member States to commit to an ambitious but realistic target of at least halving the tax gap by 2020.

Members called on the Commission to:

·        introduce a set of tangible targets for reducing the tax gap at European and national level, with the headline target being the reduction of the tax gap by 2020;

·        incorporate the targets into the Europe 2020 strategy, if appropriate, and examine whether they could be given a clear role within the European Semester;

·        examine whether the national reform programmes and the stability and convergence programmes could be expanded by incorporating these targets and measures, so as to achieve the required reduction in the tax gap;

·        launch a study on possible indicators constituting a basis for reducing tax fraud, evasion and avoidance and, if appropriate, to establish a standardised set of indicators for measuring tax evasion and avoidance.

Parliament welcomed the recent Commission proposals to expand automatic information exchange, fight VAT fraud and amend the Parent-Subsidiary Directive, which were designed to reduce tax avoidance in Europe by closing existing legal loopholes that some companies have been using to escape paying their fair share of fiscal contributions. It stressed the urgent need for better coordination, and a common drive to reduce the tax gap that would give substance to the Council’s pledges of commitment to fighting tax evasion and avoidance.

Lastly, Members called on the Commission to report annually to Parliament and the Council on the progress made in the EU and globally in fighting tax fraud and evasion and aggressive tax planning, and to publicise on its website concrete examples of best practices in this field.