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    Activists take part in a demonstration outside the European Commission (EC) headquarters ahead of statements by the EC on the effectiveness of existing measures against tax evasion and money-laundering in light of the recent Panama Paper revelations, in Brussels, Belgium, April 12, 2016

    European Legislation Fails to Hinder Tax Avoidance

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    Michael Theurer, a German member of the European Parliament, said that the inquiry committee is the right format to deal with the Panama Papers revelations – “the biggest data leak of all times that has made its way in the public and that needs not only judicial but also political consequences.”

    MOSCOW (Sputnik), Daria Chernyshova — The current European legislation is not sufficient to address the problem of tax avoidance, co-Rapporteur for the European Parliament’s Special Committee TAXE told Sputnik Friday.

    Following the Panama Papers revelations, the European Parliament set up Thursday a committee to investigate into the use of offshore accounts.

    “Current European legislation is definitely not enough to hinder tax avoidance. We are calling for more ambitious proposals from the European Commission, notwithstanding that some important steps have already been taken,” Michael Theurer, a German member of the European Parliament, said.

    “We need an effective EU legislative framework based on the Community method, including a Common Consolidated Corporate Tax Base,” Theurer said adding that the Organization for Economic Co-operation and Development's Base Erosion and Profit Shifting (BEPS) measures are not enough to tackle the problem.

    He called for stricter sanctions being imposed, “including dispossession of the banking license.”

    Theurer also stressed that the inquiry committee is the right format to deal with the Panama Papers revelations – “the biggest data leak of all times that has made its way in the public and that needs not only judicial but also political consequences.”

    He warned that keeping low profile on the potential involvement of top-politicians, athletes, managers and banks in tax evasion would mean a boost for right-wing populism.

    Earlier in April, the German newspaper Sueddeutsche Zeitung exposed the alleged involvement of the world's wealthy including a number of former and current leaders, in offshore schemes by publishing materials it claimed came from Mossack Fonseca, a Panama firm selling offshore companies.

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    #PanamaPapers: Biggest Ever Offshore Leaks (94)

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    offshore, tax avoidance, Panama Papers, European Parliament, Michael Theurer
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