Tax evasion and aggressive tax planning not only accentuate inequalities in societies but also distort competition between SMEs and larger companies who can make use of sophisticated tax structures. The fight against harmful tax competition, tax evasion and tax avoidance is one of the priorities of the FISC Subcommittee.
In January 2021, the Parliament adopted a resolution on “Reforming the EU list of tax havens”, addressing the shortcomings of the Code of Conduct (CoC) Group on Business Taxation. This was followed on 19 April 2021 by an exchange of views with Ms. Lyudmila Petkova, Chair of the CoC Group, as well as a public hearing with two experts to discuss ways to improve and reform the Code of Conduct as well as ways to tackle unfair tax practices.
On 27 April 2021, the FISC Subcommittee published a draft own-initiative report on “reforming the EU policy on harmful tax practices (including the reform of the Code of Conduct Group)”. The draft report examines how reforms of EU policy and the CoC Group itself could tackle tax fraud, evasion, and distortions of competition within in the Union.