In March 2018, the EU introduced a legislative package on the fair taxation of the digital economy. It contained proposals for an interim and a long-term digital tax. However, there was no immediate political agreement in the Council. As finding a global solution at the OECD level or a coordinated EU approach was not yet feasible at the time, some Member States started designing or implementing their own digital taxes, which gave rise to trade tensions. In this podcast, we talk about taxing the digital economy. We analyse the main challenges, look at EU proposals and new developments to make international tax regimes fit for the digital age.

EPRS policy podcast - Taxing the digital economy: New developments and the way forward

Value added tax is an important source of revenue for national treasuries and the EU budget, but it is also vulnerable to fraud. Here’s how the EU is reducing that risk.

This is what Europe does for opponents of VAT fraud

Taxation is a responsibility of the Member States, but the EU is doing a lot to improve fairness and transparency. Here is how:

This is what Europe does for corporate taxpayers

If you are just starting out in your working life, taxes can seem scary. But help is at hand. Let’s see howIf you are just starting out in your working life, taxes can seem scary. But help is at hand. Let’s see how

This is what Europe does for young taxpayers

The EU’s 2021-2027 long-term budget, together with NextGenerationEU, amounts to €1.8 trillion. This unprecedented response will help repair the economic and social damage caused by the coronavirus pandemic and aid the transition towards a modern, more sustainable Europe.

The package consists of the long-term budget (the 2021-2027 MFF multiannual financial framework) of €1.074 trillion, combined with the temporary recovery instrument NextGenerationEU of €750 billion.

It was adopted by the European Parliament on 16 December 2020.

MEPs negotiated major top-ups for EU flagship programmes like Health, Horizon (Research), Erasmus+ and supported also a roadmap introducing new sources of EU revenue. This roadmap is part of the ‘Interinstitutional Agreement’, a legally binding text. In addition to the contribution made as of 2021, based on how much unrecycled plastic a country has, the roadmap includes an ETS (Emissions Trading System)-based Own Resource (from 2023, possibly linked with a carbon border adjustment mechanism). It also includes a digital levy (from 2023) and a Financial Transaction Tax-based Own Resource, as well as a financial contribution that the corporate sector must make or a new common corporate tax base (from 2026).

Parliament also approved in its February 2024 session, the revision of the EU’s long-term budget.

This includes the €50 billion Ukraine Facility and the “Strategic Technologies for Europe Platform” (STEP), which aims to make the EU more strategically independent and to foster innovation. It also enables the EU budget to respond more effectively to evolving needs and unforeseen circumstances. In particular, it bolsters the EU’s budget to deal with migration and external challenges as well as the EU's crisis preparedness and budgetary flexibility. In line with Parliament’s demands, the revision introduces a mechanism to tackle escalating costs linked to the repayment of the NextGenerationEU recovery plan amid rising interest rates.

EU Multiannual Financial Framework 2021-2027

&nbsp;Arelatively recent phenomenon, the collaborative economy has become to the centre of the interest&nbsp;a decade in some areas of activities, such as car-sharing or short-term lets. Although it is now a well-known term – with alternative names from the 'sharing' to 'gig' to 'peer-to-peer' economy – it remains difficult to grasp precisely, beyond the central feature that potential consumers and providers are connected via a digital platform that matches demand and supply, providing cheap access to information on a very large scale.

These 'match-makers' make it possible for non-professional providers to offer goods and servicesin a wide range of activities, generating value and with the potential for further development.

The success of collaborative platforms has raised concerns regarding workers’ rights and unfair advantages these firms might enjoy over traditional companies that are bound by stricter legal regulations. Taxation issues in the collaborative economy increasingly highlight the need for an in-depth look into taxation, focusing on the link between the value created and tax, and the need for a level playing field for incumbent business facing competition from these new entrants to the market.

See more on this topic by visiting our package&nbsp; for the 8th parliamentary term.

Collaborative economy

After a series of special committees and a committee of inquiry, created to delve into the various tax leaks and scandals of recent years, Parliament established a more permanent setup to shed light on the matter.

The Economic and Monetary Affairs (ECON) subcommittee on tax matters, FISC, will be composed of 30 members. It will deal particularly with the fight against tax fraud, tax evasion and tax avoidance, as well as financial transparency for taxation purposes.

The constituent meeting will take place on Wednesday, 23 September 2020.

FISC - Subcommittee on Tax Matters

Tax measures must be adopted unanimously by the Member States. The European Parliament has the right to be consulted on tax matters, except on budgetary-related issues, for which it is co-legislator.

The power to tax is in the hands of the Member States, with the EU having only limited EU competences. As EU tax policy is geared towards the smooth running of the single market, the harmonisation of indirect taxation was addressed before direct taxation. The fight against harmful tax evasion and tax avoidance has become a recent policy priority.

Fight against tax fraud and evasion - 8th parliamentary term

During the plenary session of November in Strasbourg session, MEPs will debate amongst others, on the latest tax dodging scandal and vote on new anti-dumping proposals. The 2017 winner of Parliament's Lux Prize will be announced on Tuesday.

Plenary session - November

On the 16th October 2017, the Maltese investigative journalist Daphne Caruana Galizia was killed in a car bomb explosion. Ms Caruana Galizia gave to the Committee of Inquiry into Money Laundering, Tax Avoidance and Tax Evasion (PANA) evidence about her work on the Panama Papers at a meeting in February 2017 in Malta.

Every day journalists risk their lives to help keep us informed. Freedom of Press is considered to be an essential element of democracy by the European Parliament, which strongly supports it within the EU and beyond. Article 11 of the EU's Charter of Fundamental Rights clearly states that “freedom and pluralism of the media shall be respected”.

Press freedom in Malta (2019-2020)

EU leaders met in Brussels on 20-21 October 2022 to discuss Ukraine, energy, economic issues and external relations.

On 20 October, European leaders reached an agreement to incresase efforts,&nbsp;in light of the ongoing crisis,&nbsp;to reduce demand, to ensure security of supply, to avoid rationing, and to lower energy prices for households and businesses across the Union and preserve&nbsp;the&nbsp;integrity of the Single Market.

The European Council condemned&nbsp;in the strongest possible terms the&nbsp;indiscriminate Russian missile and drone attacks targeting civilians and civilian objects and infrastructure in Kyiv and across Ukraine. It likewise condemned&nbsp;Russia’s actions at Ukraine’s Zaporizhzhia nuclear power plant and underlined&nbsp;the European Union’s support to the International Atomic Energy Agency’s efforts to maintain the safety, security and safeguards of the facility.

On 9 November, during a plenary debate&nbsp; on the outcome of the October summit, MEPs urge to speed up the reform on the&nbsp;electricity market&nbsp;to decouple electricity prices from those of gas.&nbsp;They also called for further measures to protect citizens and businesses who are struggling to pay rising energy bills, as well as a windfall tax on the profits of energy companies.

European Council, 20-21 October 2022

EU rules are needed to better protect and support whistle-blowers and their role in revealing serious breaches of the public interest, such as corruption, miscarriages of justice, tax avoidance, lack of protection for food safety or the environment and attacks on social, human or workers’ rights.

Whistle-blowers have proved to be a crucial resource in revealing harm to the public interest.

Protection of whistleblowers - 8th parliamentary term

The papers, compiled by an international consortium of investigative journalists, show how the super-rich shelter their wealth offshore and, in some cases, minimise their tax bills. &nbsp;
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The European Parliament has, for many years, been in the forefront of the fight against money laundering and tax avoidance and evasion. Its recommendations to counter these practices were drawn up by a special committee on tax evasion (TAXE 2) and set out in a resolution voted on 6 July 2016.

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Paradise papers

Press freedom in Malta

Tax policy, including the fight against tax fraud, has become a hot topic over the past decade due to journalistic investigations such as LuxLeaks, the Panama Papers, Football Leaks, Bahamas Leaks and the Paradise Papers, which revealed tax leaks and tax havens. The latest finacial data-leak revealed by the media is Pandora papers.

During October II plenary MEPs voted for a resolution on Pandora papers, where they identified what they see as the most urgent measures the EU needs to take to close loopholes that currently allow for tax avoidance, money laundering and tax evasion on a massive scale. They also called for legal action to be taken by the Commission against EU countries that do not properly execute existing laws. MEPs reserved particular criticism for present and former prime ministers and ministers of EU member states whose activities were revealed by the Pandora Papers.

Tax policy has remained EU countries' own responsibility since the EU’s beginning, but the fight against tax fraud is shared by EU countries and the EU.

In November MEPs gave their final green light to new rules obliging big multinationals to publicly declare the taxes they pay in each EU country, in order to undermine tax avoidance. Multinationals and their subsidiaries with annual revenues over €750 million - and which are active in more than one EU country - will now have to publish the amount of tax they pay in each member state. This information will also need to be made publically available on the internet, using a common template and in a machine-readable format.

Since September 2020, the Parliament has had a permanent sub-committee on tax matters. The committee was established to assist the economic and monetary affairs committee with taxation issues and deals with the fight against tax fraud, tax evasion and tax avoidance, as well as financial transparency in taxation.

Fight against tax avoidance

This package contains the events between 1st July 2019 and 31 December 2020. For latest events, see related links.

The ‘European Green Deal’ proposed by Ursula von der Leyen, President of the EC, sets several goals for climate and nature in Europe and beyond: 

<ul>
	<li>a European climate law to enact the 2050 target;</li>
	<li>an extension of the emissions trading system; </li>
	<li>a European carbon border tax; more ambitious targets and reduce emissions by at least 50% by 2030; </li>
	<li>a sustainable Europe investment plan to boost private investments; </li>
	<li>a just transition fund so no one is left behind; a biodiversity strategy for 2030</li>
	<li>and a new circular economy action plan.</li>
</ul>

 

See also our media packages on <a href="https://multimedia.europarl.europa.eu/en/climate-change_13104_pk">climate change,</a> <a href="https://multimedia.europarl.europa.eu/en/green-house-emissions-trading-systems_2703_pk">green house emissions trading systems</a>, or <a href="https://multimedia.europarl.europa.eu/en/circular-economy_4603_pk">cicular economy</a>.

​​​​​​​​​​​​​​

European Green Deal (2019-2020)

Tax avoidance by companies cost EU countries €160-190 billion per year in lost revenue.

According to a Eurobarometer survey commissioned by the European Parliament, 75% of the EU population expects more EU action on the fight against tax fraud: it is necessary to respond effectively to this concern.
The European Parliament is leading this fight by adopting ambitious and concrete proposals to increase tax transparency and combat tax avoidance. Parliament is calling for the automatic exchange of tax rulings between member states and public country-by-country reporting for multinationals, together with a common definition of tax havens and strong and concrete sanctions.

#EUelections2019 - Corporate tax transparency

Following continued revelations in the last 5 years (Luxleaks, the Panama Papers, Football leaks and the Paradise Papers), the European Parliament decided to establish a Special Committee on Financial Crimes, Tax Evasion and Tax Avoidance (TAX3), on 1 March 2018.

The work of the TAX3 Committee built on the work of its predecessors (the TAXE, TAX2 and PANA Committees) and investigated new issues, such as digital taxation, national citizenship programs and VAT fraud.
In the course of its mandate, the TAX3 Committee met 34 times and organized 4 fact-finding missions to Washington, Latvia, the Isle of Man, Estonia and Denmark. Hundreds of experts were heard, including Commissioners, Ministers, prosecutors, investigative journalists, anti-money laundering and tax experts, accountants, bankers and NGO representatives before submitting a final report with its recommendations, including a detailed roadmap towards fairer and more effective taxation, and tackling financial crimes.

#EUelections2019 - Special Committees TAX3 and PANA

TRAN Committee group photo

FISC subcommittee meeting

FISC public hearing on 4 Capital Gains Taxation in the EU

EP Plenary session - Role of tax policy in times of crisis

TAX Symposium - Opening session

FISC - Tax Symposium 2023 ' The future of taxation in the EU: challenges ahead & changes needed '

FISC - Exchange of views with Paolo GENTILONI, Commissioner responsible for Economy, on Tax Matters

FISC - Public hearing on ' New EU common system for the avoidance of double taxation and prevention of tax abuse in the area of withholding taxes '

FISC subcommittee - Public hearing on ' Tackling the role of enablers involved in facilitating tax evasion and aggressive tax planning in the European Union (SAFE) '

EP Plenary session - Need to adopt the “Unshell” Directive on rules to prevent the misuse of shell entities for tax purposes

EP Plenary session - Topical debate - Tax the rich

REGI - Exchange of views with Laura Kövesi, European Chief Prosecutor, on frauds linked to ESI funds and on the cooperation with EU institutions

FISC Subcommittee public hearing on ' The role of tax policy in controlling inflation and promoting sustainable growth in the context of economic recovery '

FISC Subcommittee public hearing on The work of national tax authorities : ressources, strategies, cooperation

FISC Subcommittee - Exchange of views with the EPPO Chief Prosecutor, Laura KÖVESI on the ' Enhancement of the available tools in the fight against VAT Fraud '

FISC Subcommittee - Public Hearing on ' Case studies on member states national tax policies - Germany: implemented national tax reforms and the combat against aggressive tax schemes '

FISC Subcommittee.- Exchange of views with Achim PROSS, Deputy Director, OECD Centre for Tax Policy and Administration

EP Plenary session - Need for urgent update of the EU list of high-risk third countries for anti-money laundering and terrorist financing purposes

Opening of the sitting

Welcome

Need to address the urgent concerns surrounding Ukrainian children forcibly deported to Russia (debate)

Creation of a European initiative for an annual designation of European capitals for children (debate)

Resumption of the sitting

This is Europe - Debate with the Prime Minister of Finland, Petteri Orpo (debate)

Voting time

Approval of the minutes of the previous sitting

20240313-0900-PLENARY

Guidelines for the 2025 Budget - Section III (debate)

Type-approval of motor vehicles and engines with respect to their emissions and battery durability (Euro 7) (debate)

Financial rules applicable to the general budget of the Union (recast) (debate)

Cohesion policy 2014-2020 – implementation and outcomes in the Member States (debate)

The immediate risk of mass starvation in Gaza and the attacks on humanitarian aid deliveries

The repressive environment in Afghanistan, including public executions and violence against women

The case of Rocío San Miguel and General Hernández Da Costa, among other political prisoners in Venezuela

Rising anti-LGBTIQ rhetoric and violence: recent attacks in Thessaloniki (debate)

The time the European Commission takes to deal with requests for public access to documents (debate)

Explanations of vote

Agenda of the next sitting

Approval of the minutes of the sitting

Closure of the sitting

Plenary session

Subcommittee on Tax Matters

FISC

20240207-0900-PLENARY

Composition of political groups

Negotiations ahead of Parliament’s first reading (Rule 71)

Empowering farmers and rural communities - a dialogue towards sustainable and fairly rewarded EU agriculture (debate)

This is Europe - Debate with the President of Romania, Klaus Iohannis (debate)

Composition of committees and delegations

The fight against hate speech and disinformation: responsibility of social platforms within the Digital Services Act (topical debate)

Need to fight the increase of antisemitism and anti-Muslim hatred (debate)

Automated data exchange for police cooperation (“Prüm II”) (debate)

The EU priorities for the 68th session of the UN Commission on the Status of Women (debate)

Implementation report on the EU LGBTIQ Equality Strategy 2020-2025 (debate)

Implementation report on the EU LGBTIQ Equality Strategy 2020-2025 (debate) (continuation of debate)

New wave of mass arrests in Belarus of opposition activists and their family members

Increased number of executions in Iran, in particular the case of Mohammad Ghobadlou

Recent attacks on Christmas Eve in Plateau State in Nigeria

Commemoration of the 70th anniversary of Abbé Pierre's appeal on addressing homelessness in the context of persisting poverty and social exclusion (debate)

Statements by the President

Composition of Parliament

Verification of credentials

Signing of acts adopted in accordance with the ordinary legislative procedure (Rule 79)

Order of business

The European Elections 2024 (debate)

Role of tax policy in times of crisis (debate)

Small modular reactors (debate)

Minimum requirements on minimum breaks and daily and weekly rest periods in the occasional passenger transport sector (short presentation)

Foodstuffs for human consumption: amending certain 'Breakfast' Directives (short presentation)

Mental health (short presentation)

One-minute speeches on matters of political importance

EU TAX SYMPOSIUM – Challenges ahead & changes needed

Negotiations ahead of Parliament's first reading (Rule 71) (action taken)

Need for a speedy adoption of the asylum and migration package (debate)

Formal sitting - Address by Petr Pavel, President of the Czech Republic

Decent Housing for All (topical debate)

European green bonds (debate)

The proposed extension of glyphosate in the EU (debate)

Energy Charter Treaty: next steps (debate)

Energy Charter Treaty: next steps (continuation of debate)

Need to complete new trade agreements for sustainable growth, competitiveness and the EU’s strategic autonomy (debate)

The spread of ‘anti-LGBTIQ’ propaganda bills by populist parties and governments in Europe (debate)

Human rights situation in Afghanistan, in particular the persecution of former government officials

The case of Zarema Musaeva in Chechnya

Egypt, in particular the sentencing of Hisham Kassem

Scheme of generalised tariff preferences (short presentation)

Report: Lukas Mandl (A9-0248/2023) - EU-Switzerland relations

Closure of the procedure concerning a request to defend the immunity of a Member

Signature of acts adopted under the ordinary legislative procedure (Rule 79): see Minutes

Rising precariousness in Europe including the need for aid to the most deprived (debate)

Protection of workers from asbestos (debate)

Economic coercion by third countries (debate)

Intelligent Road Transport Systems (debate)

Ensuring European transportation works for women (debate)

Report: Elżbieta Katarzyna Łukacijewska (A9-0239/2023) - Ensuring European transportation works for women

State of the Union (debate)

Formal sitting – Address by Sviatlana Tsikhanouskaya

Reviewing the protection status of wolves and other large carnivores in the EU (topical debate)

Presentation by the Council of its position on the draft general budget - 2024 financial year (debate)

Framework for ensuring a secure and sustainable supply of critical raw materials (debate)

Opening of negotiations of an agreement with the United States of America on strengthening international supply chains of critical minerals (debate)

Amending the proposed mechanism to resolve legal and administrative obstacles in a cross-border context (debate)

SME Relief Package (debate)

Guatemala: the situation after the elections, the rule of law and judicial independence (debate)

The case of Dr Gubad Ibadoghlu, imprisoned in Azerbaijan (debate)

Human rights situation in Bangladesh, notably the case of Odhikar (debate)

Regulation of prostitution in the EU: its cross-border implications and impact on gender equality and women’s rights (debate)

The future of the European book sector (debate)

Report: Nacho Sánchez Amor (A9-0247/2023) - 2022 Report on Türkiye

Read-out of the College by Commissioner GENTILONI and Commissioner BRETON on the SME Relief initiatives and the proposals to simplify tax rules and reduce compliance costs for cross-border businesses

Composition of the European Parliament (debate)

Towards a more disaster resilient EU - protecting people from extreme heatwaves, floods and forest fires (debate)

EU-Tunisia Agreement - aspects related to external migration policy (debate)

Single market emergency instrument (debate)

Ambient air quality and cleaner air for Europe (debate)

Question Time (VPC/HR) - Situation in West and Central Africa in the light of the recent coups d’état

Iran: one year after the murder of Jina Mahsa Amini (debate)

Delegated acts (Rule 111(6)) (action taken): see Minutes

Corrigendum (Rule 241)(action taken)

New Agenda for Latin America and the Caribbean in the aftermath of the EU-CELAC Summit (debate)

50 years since the murder of Allende and the Coup in Chile: democracy and sovereignty (debate)

Ukrainian grain exports after Russia’s exit from the Black Sea Grain Initiative (debate)

2022 Report on Türkiye (debate)

Relations with Belarus (debate)

Sustainable aviation fuels (ReFuelEU Aviation Initiative) (debate)

Combating the normalisation of far-right and far-left discourses including antisemitism (debate)

Conclusions of the European Council meeting of 29-30 June 2023, in particular the recent developments in the war against Ukraine and in Russia (debate)

The need for EU action on search and rescue in the Mediterranean (debate)

The need for EU action on search and rescue in the Mediterranean (continuation of debate)

Tax the rich (topical debate)

State of the SME Union (debate)

Putting the European economy at the service of the middle class (debate)

Need to adopt the “Unshell” Directive on rules to prevent the misuse of shell entities for tax purposes (debate)

Need to adopt the “Unshell” Directive on rules to prevent the misuse of shell entities for tax purposes (continuation of debate)

Delivering on the Green Deal: risk of compromising the EU path to the green transition and its international commitments (debate)

Recommendations for reform of the European Parliament’s rules on transparency, integrity, accountability and anti-corruption (debate)

The political disqualifications in Venezuela

India, the situation in Manipur

Crackdown on the media and freedom of expression in Kyrgyzstan

Amendment of the agenda

Nature restoration (debate)

European Chips Act (debate)

Commemorating the 28th anniversary of Srebrenica (statement by the President)

COVID-19 pandemic: lessons learned and recommendations for the future (debate)

2023 Annual Rule of law report (debate)

Greening transport package (debate)

Question Time (Commission) – EU-Africa Strategy

Relations with the Palestinian Authority (debate)

2022 Report on Bosnia and Herzegovina (debate)

2022 Report on Albania (debate)

Financial activities of the European Investment Bank - annual report 2022 - Control of the financial activities of the European Investment Bank - annual report 2022

Accession to the Schengen area (short presentation)

Ecodesign Regulation (debate)

Request for waiver of immunity

Corrigendum (Rule 241)

Proposals for Union acts

Announcement

Industrial Emissions Directive - Industrial Emissions Portal - Deployment of alternative fuels infrastructure - Sustainable maritime fuels (FuelEU Maritime Initiative) - Energy efficiency (recast) (joint debate - Fit for 55 and Industrial Emissions)

Protection of journalists and human rights defenders from manifestly unfounded or abusive court proceedings (debate)

European Citizens' Initiative Save Cruelty Free Cosmetics - Commit to a Europe without animal testing' (debate)

Management, conservation and control measures in the area covered under the Southern Indian Ocean Fisheries Agreement (SIOFA) (debate)

Protection of workers from extreme heat and other extreme weather phenomena resulting from the climate crisis (debate)

Implementation of passerelle' clauses in the EU Treaties (short presentation)

Banking Union - annual report 2022 (short presentation)

Fostering and adapting vocational training as a tool for employees' success and a building block for the EU economy in the new industry 4.0 (short presentation)

EP Mini-Plenary Session - Voting Session

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