New research from European NGOs claim 22 European Union member states are allowing corporations avoid tax despite the revelations from the Lux Leaks scandal this time last year.
Luxembourg – the small country in western Europe that currently holds the European Union rotating presidency – is still in the spotlight. This time last year, an investigative journalism venture known as Lux Leaks exposed secretive tax rulings carried out by international tax firm PriceWaterhousecoopers in Luxembourg between 2002 and 2010. According to EURODAD – the European network on Debt and Development, 12 months on, 21 other European Union member states including Germany are also guilty of using tax rulings to make deals with corporations and the EU has failed to react adequately. In a report known as 50 Shades of Tax Dodging, EURODAD claims Germany and Luxembourg are the worst culprits for offering endless options for concealing ownership and laundering money.
European Commission president Jean Claude Juncker was Prime Minister of Luxembourg at the time of the deals. Since the scandal erupted last November, he tasked the European Commission with pushing through steps to crack down on tax deals that favour multi-nationals. But for EURODAD – that represents 48 NGOS – one year later, EU counties are still failing to tackle these kind of tax avoidances new loopholes and have even been exposed during this period