President of the Special Committee on tax rulings, MEP Lamassoure, says the days are numbered for selective tax advantages for multinationals and muzzling whistleblowers.

Tax rulings: 'virtue is coming into fashion'

https://api.multimedia.europarl.europa.eu/documents/20125/12122026/n003-0376-en.srt

After the LuxLeaks scandal the EP created  a Special Committee on Tax Rulings.

Its work began in March 2015, with the aim  of shedding light on abusive tax practices

and producing recommendations  to curb them.

But what impact will the recommendations  have, will the work really bear fruit?

It's time for Alain Lamassoure, Chair of  the Committee, to draw conclusions.

Alain Lamassoure, good evening.  Eight months on,

do you have these recommendations  for curbing the injustices of tax rulings?

We have developed and adopted them  based on work carried out over 6 months.

Our starting point is the LuxLeaks scandal.

The press acquired the tax records  of around 100 big multinationals

which showed that  in the Grand Duchy of Luxembourg

these companies obtained tax advantages  allowing them to dodge almost all their tax.

And we found that in other Member States  there were also such tax advantages.

That's an observation,  but what is your recommendation?

You have met with NGOs,  ministers and journalists.

We have made recommendations  on two levels.

At European level  we consider ourselves one family.

We are obliged to have the same kind of  taxation of profits in the 28 States.

And then at the global level,  because it must be taken into account

that by definition multinationals  function on the global market

and that the tax advantages  they had found within the EU -

if they no longer have these,  they can find them elsewhere.

Going back to the interview  we had in March 2015,

you told me that to achieve this, to really  make the recommendations concrete,

we will have to shake up,  this is the verb you used,

The primary aim we set  with the European Commission

on the rulings themselves,  tax rulings practices that is,

to mutually inform each other automatically  of all the rulings they give to companies.

If the Parliament's mission had not been  to go to the half a dozen

the finance ministers  would have found pretexts

for delaying action by 2, 3, 6 months  or for never acting at all.

But do you feel  the Member States played along?

I didn't always feel like all the doors were  open to you and that you were welcome.

Welcome, not really.  Perhaps not all the doors,

What we said six months ago is still valid:

anything that would not lead to a decision  by finance ministers by the end of the year

For all that to happen, there had to be  a man called Antoine Deltour,

who opened the LuxLeaks file  by giving certain journalists information.

Today, Antoine Deltour is awaiting trial

in which he could be sentenced  to five, even 10 years of prison.

How can whistle-blowers be protected  in relation to the information they give you?

From a legal perspective,  it's normal that they are prosecuted.

But let's say that the independent  legal authority of the Grand Duchy

in opening the case  against Mr Deltour as they did.

But on the other side,  in enabling these revelations

and in enabling, through the media, all the  citizens to become aware of the situation,

Antoine Deltour was a pioneer of what  I've called a new kind of European citizen

in the interest of... And incidentally,  we gave him the Citizen's Prize...

One could say, 'very nice', but...  -It's not just 'nice'.

It's like when the Sakharov Prize or the  Nobel Peace Prize is awarded to someone.

In any case, we bring up the problem  and we ask the European Commission

for the protection of loyal,  sincere and honest whistle-blowers.

A last question. Do you really feel  the Member States will play along?

What I'm sure of is that  there has been a change of attitude

among the governments  and among the multinationals.

That means the multinationals  themselves realise

that once they are caught in the act,  their reputation is at stake.

Our role is to make the most of this period,  this window of opportunity

to set in the European stone  the obligation to be virtuous.

Alain Lamassoure, thank you.  We'll see if all the world will be virtuous.