International

In a study published today by the Organisation for Economic Cooperation and Development (OECD), the organisation expresses serious concerns over the massive increase in tax evasion by major corporations. SP Euro-MP Dennis de Jong says that ‘the study shows that two thirds of foreign investments make use of special financial instruments, such as box number companies. The OECD recognises that this sort of practice is becoming an ever greater problem. Big firms have succeeded in so doing in bringing their tax bill down to as low as 5%, while small and medium-sized enterprises are paying an average 30%. Individual taxpayers are being put at a disadvantage by this because they are also having to pay ever increasing taxes.’

The OECD study was presented today at a meeting in which SP Euro-MP Dennis de Jong and Senator Tuur Elzinga participated. ‘The OECD is much clearer than the European Commission: tax evasion is a massive world-wide problem,’ says De Jong. ‘The Commission and the European Parliament should stop beating about the bush and tackle damaging tax instruments.’ In its study, the OECD urges the establishment of a global action plan based on the principle that taxes must be paid in the country in which the activities in question take place.

The European Parliament will in the months to come examine and debate the measures proposed by the Commission in December. ‘Now that there’s pressure world-wide to address the matter of box number companies, the European Parliament needs to show some ambition as well. I’ll be proposing concrete measures which will be based on the OECD’s excellent conclusions so that the Commission’s proposal can be significantly strengthened.’