Meeting of the Special Committee on Tax Rulings (TAXE)&nbsp;in the EP in Brussels. Exchange of views with Finance Ministers of France, Germany, Italy and Spain. Statements by Alain LAMASSOURE (EPP, FR), Pier Carlo PADOAN , Italian Minister of Economy and Finance, Michel SAPIN, French Minister for Finance, Elisa FERREIRA (S&amp;D, PT), rapporteur, Michael THEURER (ALDE, DE), shadow rapporteur, Wolfgang SCHAUBLE, German Minister of Finance, Luis DE GUINDOS JURADO, Spanish Minister for Economy and Competition

Brussels

exchange of views

statement

fight against tax fraud and evasion (T)

PADOAN, Pier Carlo (IT)

SCHÄUBLE, Wolfgang (DE)

LAMASSOURE, Alain (EPP, FR)

THEURER, Michael (ALDE, DE)

DE GUINDOS JURADO, Luis (ES)

Special Committee on Tax Rulings and Other Measures Similar in Nature or Effect

FERREIRA, Elisa (S&D, PT)

Exchange of views with Finance Ministers of France, Germany, Italy and Spain: extracts the meeting of the Special Committee on Tax Rulings

SOUNDBITE (French), Alain LAMASSOURE (EPP, FR), This temporary committee has been created by the EP in order to provide a political response to the scandal of what is known as Luxleaks information revealed by journalists. This is the way in which profits are taxed in the 28 Member States in the EU, and the way in which some of the main multinational companies are able to get out without paying a lot of taxes, either by using the failures of the tax regime in the EU, or availing certain laws or administrative practices offer to those companies in certain EU countries.

SOUNDBITE (Italian), Pier Carlo PADOAN, Italian Minister of Economy and Finances, The step by-step approach proposed by the EC should be encouraged. The EC action plan also talks about harmful fiscal practices and aggressive fiscal planning. This also uses the different rules which applies in the Member States. It also creates a loss in revenue; that means that citizens and domestic companies lose out. It destroys competition, undermine growths and competitiveness in the EU.

SOUNDBITE (French), Michel SAPIN, French Minister for Finance, We can act in an urgent and rapid manner, as we are talking to change already existing directives. We will not give up to find a harmonisation for the enterprises. This is a mid-term target for which unanimity must be achieved. I insist on the distinction between immediate introduction in the European law of the effective taxation and the will, in the future, to harmonise the corporate taxation. I know that there will be some willing to mix-up those things especially to not do anything at the end.

SOUNDBITE (Spanish), Luis DE GUINDOS JURADO, Spanish Minister for Economy and Competition, Of a particular importance is the obligation to have country by country reporting. The multinationals must furnish the information to the tax authorities on their revenue and on tax paid in each country. The tax authorities have to exchange that information with other administrations. It is essential that the EU follows its commitments. We need a better coordination between national authorities.

SOUNDBITE (German), Wolfgang SCH&#196;UBLE, German Minister of Finance, The code of conduct group has been set up already in 1997. It was already then realised that tax competition that existed then and exist now needed some kind of framework, needed to be regulated and organised. We've realised that different tax rates were not, again, an infringement against the principle of fair competition, but obviously we've got to the limits of what we believed, and we believe now, that have to be the minimum rate of taxation.

SOUNDBITE (English), Elisa FERREIRA (S&amp;D, PT), rapporteur, Until now we understood that no exchange of information existed between any of our Member States and the Luxembourg, for instance, or the Netherlands. Nevertheless since 1997 you are allowed to do that. Why didn't you asked for information? What's the reason for that, given the fact that all of you agree that there is a huge damage for your citizens by the tax dogging inside Europe? (...)

SOUNDBITE (English), Elisa FERREIRA (S&amp;D, PT), rapporteur, For the country-by-country reporting what is essential is transparency, and it helps you in your individual agenda. We have been said that Italy, Spain and Germany are against, or are blocking the negotiations. Is that true? On access to information: Citizens want to know the reason why there is no progress, and who is blocking in the Council?

SOUNDBITE (German), Michael THEURER (ALDE, DE), shadow rapporteur , Germany does not agree with the EC proposal, the German Senate has given a negative opinion, there can be another convention on tax ruling. What about the obligativity of access to information under the paragraph 89?

SOUNDBITE (German), Wolfgang SCH&#196;UBLE, German Minister of Finance, You asked why we haven't dealt with this before. Maybe you remember my predecessor as finance minister. He wanted to send a cavalry. But then the answer of Luxembourg Finance Minister was "we already had some German troops here in Luxembourg, we don't want German troops here again". So there are some reticence in dealing between Member States.

SOUNDBITE (German), Wolfgang SCH&#196;UBLE, German Minister of Finance, All of us, including the EP, whether you like it or not, we've been politicians for donkeys. I've been a politician for more years than most of you. Let's don't do the historical mistake two years. So what's out here, I don't want to be competitive or anything, but, often you aren't able to exploit the limits you've got, because you've got over pressing problems. We are restricted by the Treaty of the EU, we need unanimity. Unanimity takes too long; we have to be in line with currently our primary law. As in other countries, in Germany we have to stick to the German constitution and the administration is regulated by the landers, the regions.

SOUNDBITE (Spanish), Luis DE GUINDOS JURADO, Spanish Minister for Economy and Competition, The Gibraltar tax regime is characterised by a very low level of taxation. It makes up frequent, and inappropriate use of tax rulings. In terms of Spanish tax authorities we are surprised that there is never any kind of reporting of this.

SOUNDBITE (Spanish), Luis DE GUINDOS JURADO, Spanish Minister for Economy and Competition, Somebody mention the possibility of a European Tax Agency. I'm very pro-European, but I think that there are other steps that we will have to take in the short term. Sometimes we try to do too much to improve a situation which isn't working ok, but I think it is  important for us to adopt a whole series of  directives we are working on for the moment, really push the automatic exchange of information and adopt everything related to BEPS. This is a kind of  minimum element, minimum standard for all EU.