Europe's role in tax- related capital flight from developing countries 2013

This report examines the tax-related capital flight policies in 13 EU countries (Czech Republic, Denmark, Finland, France, Hungary, Ireland, Italy, Luxembourg, Netherlands, Slovenia, Spain, Sweden and the United Kingdom). Besides capital flight regulations, the report examines the actions taken by national governments to tackle money laundering, tax avoidance and tax evasion; and attitudes towards EU laws that could help solve the problem. They highlight the efforts and the shortcomings of European leaders on this issue, and propose ways forward. The report finds that there is a significant discrepancy between tough political rhetoric from the governments surveyed and their actions. This is having a particularly damaging impact on developing countries. Specifically, this report finds that: – All governments surveyed are failing to demand adequate tax transparency from companies, in that no government has implemented full country-by-country reporting. – Most governments are reluctant to let members of the public find out who really owns the companies, trusts and foundations within their jurisdictions. – Data showing governments exchange of tax-related information are rarely publicly accessible and countries in the global South are barely participating in this form of exchange, which could help them identify tax evaders. – No European governments support equal inclusion of developing countries in policy making on tax and transparency. The report concludes with a number of recommendations and highlights some important political opportunities at EU level that should be grasped by member states.

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publication cover - Giving with one hand and taking with the other
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