Fighting tax avoidance and evasion would bring more money into developing countries' coffers, but there are obstacles to be overcome, MEP Elly Schlein explains.

Key to sustainable development: tax collection?

How much money is lost  in developing countries through tax fraud

or the non-taxed profits  of illegal activities?

This money could bring  development and wealth.

or is the battle lost if not all  the global multinationals agree?

We asked Elly Schlein,  a young Socialist MEP.

What's the problem? Are we really  talking about huge sums of money?

We should take estimates  with a pinch of salt

when we're discussing  tax evasion and avoidance

A lot of estimates are around the figure  of 1,000 billion dollars a year

This is almost ten times the amount  of development aid that they receive.

We must fight this so we don't take with  one hand what we give with the other.

The obstacles facing these countries  are huge.

Lack of infrastructure,  lack of administrative capacity,

agreements,  tax incentives and exemptions

which end up being profitable  for the multinationals but not the countries.

You even appealed  to the European Commission

and help them set up a tax system,  to show them the ropes.

Isn't it a bit naive  thinking that the Commission,

which can't fight corruption and tax evasion  in Greece or Italy, can do it in Africa?

in terms of its policy dialogues  with these countries.

We're saying that  there's not enough development aid

going into  technical and financial assistance.

These countries' capacity to mobilise  national resources will be much stronger

in reducing  their dependence on foreign aid.

I was intrigued by people's courage  in pointing the finger at an EU country,

which doesn't make its multinationals  pay enough taxes.

Holland is doing something  which we're asking

both the Commission  and the Member States to do.

of EU tax policies  on developing countries

creates potential losses  for developing countries

ranging from 150  to 550 million per year.

The multinationals,  through networks of subsidiaries

in various countries,  including developing ones,

manage to concentrate their losses  in countries with higher taxation

and their profits in countries  with more favourable taxation,

The OECD is trying to address this  with the anti-BEPS plan.

just before the important conference  in Addis Ababa next week,

where this will be  one of the most delicate issues,

is the creation  of a proper intergovernmental body,

perhaps by transforming  the existing UN taxation committee.

where everybody  speaks for their government

and developing countries take part  on equal terms.

We also want  automatic exchange of information,

support for developing countries,  impact assessments and other measures.

but there are tax havens within it,  will you have lost?

In the report we ask for  an internationally agreed definition

We want a blacklist of countries that  don't do enough to combat tax evasion,

if we look  at certain European countries.

We'll ask the people responsible for  development policy in Member States

not to work with operators  who make use of tax havens.

To prevent companies opening  subsidiaries in different countries

without clear rules  about where taxes should be paid,

from all multinational companies,  listed or unlisted, in all sectors,

including those  extracting natural resources.

We'll ask them to tell us  how many subsidiaries they have,

how much profit they make,  how much tax they pay

and how many people work  in these subsidiaries.

The report serves to establish  a very simple principle.

Taxes must be paid  where profits are made.

Of course. Elly Schlein, good luck.  -Thank you.