German minister for finance pushes for clampdown on EU loopholes for tax avoidance

Germany’s minister for finance, Wolfgang Schauble has confirmed his intentions to push for a new fiscal balance between the EU and member states, closing loopholes allowing legal tax avoidance by corporations, during his second term.
 
Dr Schauble told the Bundestag this week that Germany was determined to "apply existing tax entitlements with greater consequence", though the minister admitted it was becoming harder for governments to squeeze global companies for tax revenue.
 
"The tax avoidance possibilities [which] globalisation allows make it easy for finance markets to use optimally the different tax rules that exist," said Schauble.
 
Schauble insisted Berlin would push for agreement on global tax rules at OECD and G20 level, and was optimistic that an automatic exchange of data between European tax authorities would be agreed in the coming legislative period.
 
"We have to be wary of illusionary expectations that cannot be met because, of course, the creativity to avoid [tax] is always great," said Schauble.
 
"But everyone agrees that the acceptance of our democratic systems depends on applying existing tax entitlements."
 
Schauble also urged the debate to continue regarding a balance between EU ‘solidarity’ and the ability for each individual member state to "set its own tax rates to drive competition".
 
It is doubtful the balance is right just yet and members are being called to co-operate on such fiscal matters for the long term acceptance of the European project and the shared currency.


Image: Yanni Koutsomitis

Date published 4 Feb 2014 | Last updated 4 Feb 2014