Transparency should safeguard member states on taxation – Sant
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MEP Alfred Sant told the European Parliament in Strasbourg that transparency measures should not serve as a pretext to introduce tax harmonisation or to reduce the sovereignty of EU member states in organising their taxation systems in line with their endowments.
Dr. Sant emphasised that the latter point is especially crucial for smaller, peripheral economies in the EU system which have seen their flexibility eroded over the years by rules applied in a one-size-fits-all mode on a continental basis.
The MEP, making an explanation of vote on a resolution on mandatory automatic exchange of information in the field of taxation, said he supports all measures meant to ensure this transparency.
"Such measures must fully respect the need to allow a wide legitimate space for the financial services industry to function effectively, as well as the need for European corporations to compete on global markets against players which do not play by European rules. I am sure that robust systems that combat tax evasion, aggressive tax planning, money laundering and related issues can be set up on a European basis, and globally, while respecting the above principles," explained the Maltese MEP.
Dr Sant voted in favour of the Resolution which passed with 567 votes in favour, 30 against, and 53 abstentions. He abstained on references to 'public country-by-country reporting' while voting against references to lower down the scope of the Directive for companies with a turnover of €40 million from the established one of €750 million.