Tackling tax fraud and tax evasion: closing the loopholes for fiscal justice with guest speaker Richard Murphy (Tax Research UK)
The 7th Roundtable of the Next Left Economic Circle was held on 26 February 2013 from 12.30 to 14.30 in the European Parliament. Richard Murphy, one of founders and key figures of the Tax Justice Network.
There are currently 21 Trillion dollars of assets in Tax Havens and 1 Trillion Euros lost by Europe in Tax fraud and tax avoidance. We have to commit that everybody will pay for its fair share. We won the argument, he said, but we need to win the action now.
- Tax Havens undermine Democracy, because they deny Governments the money they need to fill in their mandates - this money that is hardly needed for education and healthcare. The secrecy they crate undermines other Governments' taxation systems. We therefore need full information exchange.
- This implies country by country reporting -he thanked the EP for its strong position on this. We need to know what companies are doing, where their assets are, where they are making profits.
- As for Corporate Tax abuses, he said, "we have to embarrass the companies into compliance. They won't do that voluntarily".
- Regarding tax fraud, in the UK, in the next few years, one in 6 staff will be sacked in the tax administration - and this is a European trend. Austerity policies undermine the tax system, by downsizing the tax administrations and therefore allowing for tax fraud.