benefit all governments to be closed if the tax holes using multinationals to evade taxes, says the OECD. Like all taxpayers already contribute a fair share to the public funds, according to the organization of rich countries. So far the theory.
In practice see countries working together in the G20, the OECD and the European Union to back tax evasion to insist, is faced with a classic “prisoner’s dilemma”. If they go up in unison, everyone is there perhaps better. But what if a competing country is slightly more tolerant for international business which is a worldwide search for the lowest tax rate?
From this suspicion has much to lose Netherlands and so much to defend. Does the opposite rivals who are equally mistrustful but usually a few sizes bigger. The defensive work also takes place in the Code of Conduct EU Group. Since the late nineties, the officials from the EU countries in this group are considered harmful tax competition to counteract the Union.
In reality takes work in what is usually called the Primarolo group, often from a battle between large and small Member States, says a Dutch political source. The UK, Germany and France found that large companies actually belong in large countries. Therefore, they are out to undermine from the tax climate of the small Member States, is the perception of this resource.
Netherlands performs unremitting struggle to remain fiscally attractive
from several cases turns out, everything is pulled out of the closet
The British make no secret of their ambition to win as many head offices. They throw themselves wholeheartedly into the tax competition battle. Germany, however, is genuinely concerned that rivalry bad picks for the EU as a whole. But the Federal Government raises his hands to heaven as the Länder draw their own plan to acquire companies. France is the most hypocritical. There, in secret business done between politics and business. Anyway, all three Netherlands they try to make life difficult.
But the Netherlands does not leave it at that. It performs a relentless guerrilla in the Primarolo group to remain fiscally attractive country. That is apparent from informal notes of the European Commission of the working group, part of which have been released.
An important item on the agenda of the Working Group the differences between national tax systems that companies use, where appropriate, to avoid paying taxes anywhere. Netherlands selects the line that the avoidance of harsh laws must be fought and not binding agreements. That sounds constructive, but it can also be interpreted differently.
The desire for legislation is motivated by distrust of countries that are less strict in compliance with agreements. But drafting laws and approval takes more time than making appointments, while the results in advance is uncertain. Hence, a representative of the Commission are wondering after a fruitless meeting in 2010 or the desire for legislation arises is of serious concern or a simple attempt to prevent that ever changes anything
Voor the record: lost this battle, the Hague. Since January 1, the so-called parent-subsidiary directive of the EU adjusted so that Member States to prevent abuse of poor contiguous tax system.
the European Commission notes the Primarolo group are not just released .
The EU countries are not eager to ask to honor disclosure, appears from confidential documents. However, the Commission considers that it is its responsibility and integral rejection of the request is contrary to rules on transparency. Why does the EC notes on current files unreadable.
The notes show that the Netherlands from the start of the Primarolo group is afraid that his views come out. In 1998, the Dutch representative says not to want to talk confidential and sensitive issues without cast iron guarantees of confidentiality. Ten years later Netherlands will not stand in the footnote of an official report as one of the three Member States with a different point of view. In the same report makes Netherlands objected to the wording ‘all but one’ – it is clear that only the Netherlands against. It suggests: “Consensus was Not Reached, but most MS (menber states; ed.) …”
Since the start of Primarolo group Netherlands lies across when talking about flows of companies are entering the EU and leave. Netherlands here has great interest because it has a lot of trust, lawyers and tax consultants who facilitate these flows.
The group discusses the need to prevent multinational companies pay too little tax as they pour low-tax profits from outside the EU on their European bank accounts. According to most Member States, everything starts with the exchange of information. The idea that the Member State in which the low-tax corporate profits come yet imposes a levy, was endorsed. Netherlands rejects both options, supported by the British.
(The idea to raise taxes yet in Europe profits outside the EU low charge, returns to the proposals made by the EC in January to combat tax evasion is the sting taken out of the proposal Under the temporary presidency of the Netherlands)
Ook the opposite problem comes in the Primarolo group discussed: dividend EU flows while it is hardly taxed. Netherlands again opposes the proposed solutions: a withholding tax or an anti-abuse measure. This time also against Belgians alongside the British. But no country acting in accordance with notes from 2010 such a radical position in the Netherlands: it simply denies that this form of tax evasion is a problem
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