European Parliament Adopts More than 200 Recommendations Against Financial Crimes and Tax Evasion

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Saturday, March 30, 2019
Author: 
Michael Plachta
Volume: 
35
Issue: 
4
Abstract: 

On March 26, 2019, the European Parliament adopted a detailed roadmap towards fairer and more effective taxation, as well as tackling financial crimes. The recommendations, adopted by 505 votes in favor, 63 against, and 87 abstentions, were prepared over the course of a year by Parliament’s Special Committee on Financial Crimes, Tax Evasion and Tax Avoidance (TAX3). They range from overhauling the system to deal with financial crimes, tax evasion, and tax avoidance, notably by improving cooperation in all areas between the multitude of authorities involved, to setting up new bodies at the EU- and global-level. The Lux Leaks, Panama Papers, and Paradise Papers revelations shamed EU leaders and several governments in recent years, showing how corporations and individuals have resorted to dirty tricks and legal loopholes to dodge billions upon billions in taxes. As a result, the Parliament set up a special committee on financial crimes, tax evasion, and tax avoidance with the aim of tackling money laundering and corporate tax crimes (TAX3) on March 1, 2018.