Cum Ex scandal: investing in tax administrations is the solution

cum ex files

(29 November 2018) In its resolution on the Cum-Ex Files, another tax scandal involving the financial industry and tax avoidance advisers, the European Parliament calls for four key measures including the need to invest in tax authorities, instead of axing jobs, and structured cross-border cooperation, as called for by EPSU.

“If there is one EU institution that takes tax justice seriously and assiduously  it is the European Parliament” says Jan Willem Goudriaan, EPSU General Secretary. “This needs to continue following the European elections in May 2019. Member States should give up their resistance to public country by country reporting to allow for an effective response to corporate tax avoidance.”

Around 10% of jobs in tax administrations were cut between 2009 and 2014, with Greece and the UK at the top of the table, as shown in an EPSU report

EPSU is currently updating EU-wide figures on job cuts to be published next year in a new report that will also look at the impact of digitalisation and privatisation. There is already an indication that job cuts in tax administrations continue despite slow progress on closing the tax gap in Europe.

The resolution of the European Parliament comes on the heels of  the European Economic and Social Committee (EESC)’s recent opinion on Fiscalis for 2021-2027, which also underlines the urgent need to improve the operation of tax policy, including administrative cooperation and support to the tax authorities.

For more information on the Cum-Ex files

For the EP report

Six reasons why tax-inspectors want Public country by country reporting

For previous EPSU articles on tax justice