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

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

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

&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

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

Anti-money laundering. Parliament debate with Council and Commission the decision to add the Democratic Republic of Congo, Gibralta, Mozambique, Tanzania and United Arab Emirates to the list of high-risk third countries for anti-money laundering and terrorist financing purposes. Closing statements by Jessika ROSWALL, Swedish Minister for EU Affairs and by Jutta URPILAINEN, European Commissioner for International Partnerships.

Urgent update of the EU list of high-risk third countries for anti-money laundering and terrorist financing purposes: statements by Jessika ROSWALL, Swedish Minister for EU Affairs and Jutta URPILAINEN, EU Commissioner for International Partnerships

Parliament debate with Council and Commission the decision to add the Democratic Republic of Congo, Gibralta, Mozambique, Tanzania and United Arab Emirates to the list of high-risk third countries for anti-money laundering and terrorist financing purposes.

Urgent update of the EU list of high-risk third countries for anti-money laundering and terrorist financing purposes: MEPs debate

Anti-money laundering. Parliament debate with Council and Commission the decision to add the Democratic Republic of Congo, Gibralta, Mozambique, Tanzania and United Arab Emirates to the list of high-risk third countries for anti-money laundering and terrorist financing purposes. Opening statements by Jessika ROSWALL, Swedish Minister for EU Affairs and Jutta URPILAINEN, European Commissioner for International Partnerships.

MEPs debate and vote on their negotiating position for talks with EU member states on new rules for the EU’s alternative fuels infrastructure. They want electric charging pools for cars to be available at least every 60 km along main EU roads by 2026 and hydrogen refuelling stations every 100 km by 2028. Recharging stations must be accessible to all, regardless of the brand of the vehicle. Extracts from the debate (17/10) and from the vote, statement by Ismail ERTUG (S&D, DE), Rapporteur.

Deployment of alternative fuels infrastructure: extracts from the debate (17/10) and from the vote, statement by Ismail ERTUG (S&D, DE), Rapporteur

To help the EU become climate neutral, MEPs are set to demand that car-recharging stations be installed every 60 km and greenhouse gas emissions from ships be limited. Parliament is also set to adopt its negotiating position on new rules on the use of renewable and low-carbon fuels in maritime transport. MEPs aim to promote sustainable maritime fuels by introducing requirements for ships arriving at or departing from EU ports.

Joint debate - Fuels: MEPs debate (part 1)

&lt;p>To help the EU reach its climate neutral goal by 2050, aviation should gradually switch to sustainable fuel, such as synthetic fuel, used cooking oil or even hydrogen. MEPs debate and vote on their negotiating position on the new ReFuelEU aviation rules.&lt;/p>

Sustainable aviation fuels (ReFuelEU Aviation Initiative): MEPs debate

MEPs debate on Wednesday and vote on Thursday on the Commission proposal implementing the international agreement on a global minimum corporate tax rate of 15%. The draft text calls for a review clause that would allow for the annual revenue threshold above which a multinational corporation would be subject to the minimum tax rate to be revised. Closing statements by Aurore LALUCQ (S&D, FR), rapporteur and by Mairead MCGUINNESS, European Commissioner for Financial Services, Financial Stability, and Capital Markets Union.

Minimum level of taxation for multinational groups: closing statements by Aurore LALUCQ (S&D, FR), rapporteur and by Mairead MCGUINNESS, European Commissioner for Financial Services, Financial Stability, and Capital Markets Union

MEPs debate on Wednesday and vote on Thursday on the Commission proposal implementing the international agreement on a global minimum corporate tax rate of 15%. The draft text calls for a review clause that would allow for the annual revenue threshold above which a multinational corporation would be subject to the minimum tax rate to be revised. MEPs debate and statement by Mairead MCGUINNESS, European Commissioner for Financial services, financial stability and Capital Markets Union.

Minimum level of taxation for multinational groups: MEPs debate and statement by Mairead MCGUINNESS, European Commissioner for Financial services, financial stability and Capital Markets Union

&lt;p>MEPs debate on Wednesday and vote on Thursday on the Commission proposal implementing the international agreement on a global minimum corporate tax rate of 15%. The draft text calls for a review clause that would allow for the annual revenue threshold above which a multinational corporation would be subject to the minimum tax rate to be revised. Opening statements by Aurore LALUCQ (S&amp;D, FR), rapporteur.&lt;/p>

Minimum level of taxation for multinational groups: opening statements by Aurore LALUCQ (S&D, FR), rapporteur

MEPs debate on the Council’s recently-adopted recommendation to move from country-based travel rules to ones based on personal health status. They are also expected to highlight the need for a coordinated and harmonised approach to guarantee free and safe travel.

Harmonised EU approach to travel measures: MEPs debate

MEPs comment on the 24 November ruling by the Polish constitutional tribunal that declared parts of the European Convention on Human Rights incompatible with the Polish constitution. MEPs debate also about the state of sexual and reproductive health and rights in the country.

Plans to undermine further fundamental rights in Poland: MEPs debate

In a draft report to be debated on Monday and put to a vote on Wednesday, MEPs call on member states to take practical measures to ensure that women have equal access to the labour market, with equal pay and equal labour rights.

Equality between women and men in the European Union in 2018-2020: MEPs debate

MEPs debate new law obliging multinationals to publically declare what taxes they pay in each EU country for the benefit of the public and tax authorities, also known as public country-by-country reporting. Closing statements by Mariya GABRIEL, European Commissioner for Innovation, Research, Culture, Education and Youth and by Evelyn REGNER (S&D,AT) and by Ibán GARCÍA DEL BLANCO (S&D,ES), co-Rapporteurs.

Disclosure of income tax information by certain undertakings and branches: closing statements by Mariya GABRIEL, European Commissioner for Innovation and Research, and by Evelyn REGNER (S&D, AT) and by Ibán GARCÍA DEL BLANCO (S&D, ES), co-rapporteurs

MEPs debate new law obliging multinationals to publically declare what taxes they pay in each EU country for the benefit of the public and tax authorities, also known as public country-by-country reporting.

Disclosure of income tax information by certain undertakings and branches: MEPs debate

MEPs debate new law obliging multinationals to publically declare what taxes they pay in each EU country for the benefit of the public and tax authorities, also known as public country-by-country reporting. Opening statements by Evelyn REGNER (S&D, AT) and by Ibán GARCÍA DEL BLANCO (S&D, ES), co-Rapporteurs and by Mariya GABRIEL, European Commissioner for Innovation, Research, Culture, Education and Youth.

Disclosure of income tax information by certain undertakings and branches: opening statements by Evelyn REGNER (S&D, AT) and by Ibán GARCÍA DEL BLANCO (S&D, ES), co-Rapporteurs and by Mariya GABRIEL, European Commissioner for Innovation and Research

Announcement of the results of the second voting session, including the Final votes on the motions for resolutions - Pandora Papers; - the Rule of law crisis in Poland and the primacy of EU law.

Announcement of the results of votes on Pandora Papers and on the Rule of law in Poland

MEPs discuss with the Commission efforts and rules that should be beefed up to better fight money-laundering, another practice which the Pandora papers also shows is thriving. Closing statement by Mairead McGUINNESS, European Commissioner for Financial Services, Financial Stability, and Capital Markets Union

Increased efforts to fight money laundering: closing statement by Mairead McGUINNESS, European Commissioner for Financial Services, Financial Stability, and Capital Markets Union

MEPs discuss with the Commission efforts and rules that should be beefed up to better fight money-laundering, another practice which the Pandora papers also shows is thriving.

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Fight against tax fraud and evasion - 8th parliamentary term

Fight against tax avoidance

FISC - Subcommittee on Tax Matters

Collaborative economy