EPSU selected at the European Tax Employees Trade Union in EC drive to fight tax fraud and avoidance

(28 October 2013) EPSU, the European Federation of Public Services Unions, has been selected to participate in a platform for Tax Good Governance established last June by the European Commission as part of its action plan against tax evasion and avoidance.

The selection recognizes EPSU’s policy advocacy work for progressive tax regimes and EU binding measures against corporate tax fraud and avoidance so that public services can be properly financed and wealth and income redistributed.

It also recognises EPSU’s representativity as the largest union of tax employees in Europe.

The platform consists of national government representatives and 15 experts drawn from civil society, business, accountants/tax advisers and academics.

It is to assist the EC in preparing its report on the application of its recommendations against tax havens and aggressive tax planning.

It is chaired by EC Director-General for Taxation Mr Zourek and will meet 2 or 3 times a year until 2016.

At its second meeting on 16 October last, the topics for the workprogramme in 2014 were agreed, including those that are central to EPSU’s campaign “Europe’ s missing 1 trillion €: we want it back” such as: common criteria to define tax havens with a view to their blacklisting, common policies to tackle aggressive tax planning including tools aimed at more corporate transparency on who pays what to whom i.e. country by country reporting, automatic exchange of tax administrations and registers on trust, foundations.

EPSU has welcomed that the Commission finally put forward a plan for tackling tax evasion and avoidance that costs society €1Trillion per year and the establishment of the platform to facilitate its good application that must be supported by more staff in public tax administrations.

But there are strong concerns at the overrepresentation of business, employers and tax advisers on the platform. Whilst civil society holds 5 seats including only 1 trade union, there are 3 employers organisations (Business Europe, MEDEF and BDI), 2 chambers of commerce and 4 tax advisers/accountants organisations (FEE, CFE, Dutch NOB, ACCA).

The risk of conflict of interest has been raised by a cross party group of MEPs to the Commission. Corporate Europe Observatory, an NGO that defends more transparency of EU institutions, has lodged a complaint to the Ombudsperson. At the meeting, it was said that the composition of the platform will be reviewed which will not necessarily mean a revision.

What’s more, the platform meets under the Chatham house rules, i.e. what is said can be reported but not who said it. At the meeting, EPSU expressed its reservations as to the application of those rules, especially as platform members do not sit in a personal capacity but on behalf of their organisation or government.

Next meeting is on 6 February, with aggressive tax planning as one of the main agenda items.

- MEPs’ question on platform composition      

- EPSU’s comments to EC action plan against tax fraud and evasion