The PANA Committee held a hearing with Pierre Moscovici, European Commissioner for Economic and Financial Affairs, Taxation and Customs, who gave details of the planned EU blacklist of tax havens to be published this year, addressed the further work on the role of intermediaries and informed about recent exchanges with members of the new US administration.
The commissioner said that the fight on transparency has not been won yet, but new rules that are to be implemented by the end of this year, such as blacklist of tax havens or automatic exchange of information, will significantly improve the situation.
Measures Against Intermediaries and Harmful Practices
The European Parliament has called for tougher measures against intermediaries who design complex financial structures to help clients avoid paying tax. These intermediaries include consultants, lawyers, financial and investment advisors, accountants, financial institutions, insurance intermediaries and “Trust and Company Service Providers”. Commissioner Moscovici said the measures would be tough and wide-ranging. He expected to make them public in June.
EU Blacklist and New US Administration
Moscovici said the blacklist of tax havens would be presented to ECOFIN in June, with its likely adoption by the end of September. The Commissioner also briefed MEPs on his exchanges with members of the new US administration. He said he had met the new US Secretary of the Treasury, Steve Mnuchin, and economic advisor to the US President, Gary Cohen to press the case for global tax transparency.
“It’s no secret that the EU wants reciprocity on exchange of information [in tax matters],”he said. But like the EU, the United States needed to scrutinize its tax system.
With the fast growth of China’s economy and the continuous improvement of the comprehensive strength of domestic enterprises, as well as the implementation of the “One Belt, One Road” policy, an increasing amount of Chinese enterprises are beginning to expand their global footprint and establish their presence in Europe.
TPA Global has developed a practical roadmap of 6 steps meant to guide CFOs in their Journey of rising above troubles to reach a situation of full control. These steps are presented in a series of short video clips (3-5 minutes):