0
0
0
s2smodern

„The Paradise Paper Leaks increase in a timely manner pressure upon European Political Leaders to speed up their efforts to combat aggressive tax avoidance, tax evasion and money laundering. All this causes unacceptable losses of tax revenue, which is needed for investment in infrastructure, education, containment of climate change or the reduction of inequality and public debt. It is further expression of the disdain which private, corporate and criminal wealth holder display against democratically defined obligations and violates the Principle of Ability to Pay for the Commonwealth”, says Fr. Jörg Alt SJ. “A number of countermeasures are indeed underway since the Panama Papers, but there are still too many legal loopholes, administrative shortcomings and attempts of individual states to save their little ‘extra advantages’ in global tax competition.”

As to the latter, European states should be aware that among themselves are a number of states which deserve the term “tax haven”, too: it is not correct to point to the Caymans, British Virgin Islands or Mauritius without criticizing equally attractive tax conditions for Big Money in Ireland, Luxembourg, Netherlands, Malta or Cyprus. It is also not correct to blame the US or the UK for dragging their feet on counter measures, while states like Germany block attempts suggested by the European Commission to increase public transparency in the beneficial ownership of trusts or shell companies.

“Combating the hemorrhage of tax revenue is a complex task for states”, says Alt, “and given the indeed lacking willingness on the side of the US and the UK it would be big progress if the EU 27 could reduce tax avoidance and evasion instruments and end tax have practices within their own area of responsibility, both in the area of legislation and administrative cooperation. This would give the EU also more clout and a moral edge towards other jurisdictions.”

Until reforms are in place it should be secured that Whistleblower, revealing these illicit, illegal and criminal malpractices, are not being punished: Given the situation as it is, those leaks are the main driver behind reform movements.

Fr. Jörg Alt SJ, PhD, MA, BD, (*1961) works at the Jesuitenmission Office in Nuremberg and is cooperating on the research and advocacy project „Tax Justice &Poverty“ with Jesuit institutions in Kenya and Zambia, See http://www.taxjustice-and-poverty.org/

0
0
0
s2smodern