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Article

1 May 2014

Author:
Centre for Research on Multinational Corporations (SOMO) & Tax Justice Netherlands

Europe for a fair tax system

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Tax avoidance is a huge problem for countries within as well as outside the European Union. Annually, the EU loses about € 150 billion through tax avoidance. Meanwhile, the same EU lent billions to southern European countries during the economic crisis in order to save their economies...Tax avoidance through the EU not only affects us, the citizens. Developing countries also miss out on vast amounts of money each year due to tax avoidance by multinationals, through, amongst others, the EU. The amount that developing countries miss out on annually through tax avoidance is at least as much as € 115 billion...This is money that these countries desperately need for public services such as education and healthcare...Call on the EU and politicians to: Incerease transparency. Companies must publicly report, for each country they are active in on the sort of activities, profits, tax payments and the number of employees...Demand that anti-abuse measures are implemented in national legislation and that all member states actively tackle the abuse of tax rules...Advocate an alternative tax system that ensures that a company pays its fair share of tax in every country based on its economic presence.