EU's Moscovici pushes for action for more transparency after Paradise Papers

The European tax commissioner has stated that the EU requires a quick agreement on proposed rules for bankers, lawyers and other advisers which aid the formulation of ways to significantly reduce tax bills.

Pierre Moscovici made these comments in a recent speech in the European Parliament in Strasbourg.

Moscovici urged EU legislators and member states to agree on the proposals made by the EU’s executive commission “in the next six months” which would push tax advisers to report tax-planning systems designed for their clients.

He also compared tax professionals that help tax evasion to “vampires” who are afraid of light, against which only transparency can act as a restraint. This is a result of new revelations within the Paradise Papers of widespread use by entities and wealthy individuals in off-shore jurisdictions.

There are 3 EU-wide policies which are aimed at eradicating tax avoidance that are being backed by Moscovici: new transparency rules for tax intermediaires, bankers and lawyers; mandatory country-by-country reporting for profits and a blacklist of global tax havens backed by sanctions.