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Juncker calls for global tax fight

The EC president has called for 'fair' tax rules at a time when he has been accused of architecting 'unfair' tax breaks for multination's while he was prime minister of Luxembourg

17 November 2014

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The EC president has called for 'fair' tax rules at a time when he has been accused of architecting 'unfair' tax breaks for multination's while he was prime minister of Luxembourg

The president of the European Commission (EC), Jean-Claude Juncker, has called for global cooperation and coordination in battling tax evasion.

Juncker said: "I really do think that on the international, on the global level, we have to fight all together against tax evasion."

He made his comments on Saturday (15 November) at the G20 summit in Brisbane.

Australian treasurer, Joe Hockey, shared Juncker's sentiments and added: "At the beginning of the year we set out to restore integrity and resilience to our tax bases, and give our citizens the confidence that everyone is paying their fair share of tax.

"Now I can say that we will bring international tax rules into the 21st century and ensure the rules keep pace with changing business models."

However the EC president is currently under pressure as he stands accused of presiding over the creation of tax-break schemes for multinational companies for almost two decades, while he was the prime minister of Luxembourg from 1995-2013.  

He issued a denial of the allegations on Tuesday (12 November), where he said in reference to Luxembourg's tax policies: "Everything that has been done has been in compliance with national legislation and international rules that apply in this matter."

Luxembourg is currently under investigation by the EC for providing "sweetheart" deals to over 340 multinational companies, which allowed them to drastically reduce their global tax bills.

The nation denies any wrong-doing and has pledged to cooperate fully with the investigation.

 

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Tax & Wealth structuring