In response to recent tax scandals such as Panama Papers, the European Commission is publishing proposals this Wednesday aimed at obliging intermediaries, like lawyers or accountants, to automatically report to their financial authorities potentially aggressive tax planning arrangements. Liberals and Democrats welcome the proposal since it will increase transparency and access to information at an early stage. This would enable authorities to quickly assess the risk of these arrangements and if necessary, to react and to close down loopholes.

Co-Rapporteur of the PANA committee, Petr Ježek (ANO, Czech Republic) said today:

“Without the help of intermediaries, the tax evasion and money laundering schemes revealed in the Panama Papers would not have existed. Enablers such as lawyers, accountants, bankers, tax advisors and other wealth managers help their wealthy client to circumvent our rules. It is essential that the EU dissuade them from entering into this business by forcing them to proactively disclose the cross-border tax schemes they execute on behalf of their clients. I call on Member States to adopt the proposal as soon as possible.“

MEP Michael Theurer (FDP, Germany), ALDE Group’s Coordinator of the PANA Committee and former Co-Rapporteur of the two Tax Special Committees (TAXE I and II), added:

“To regulate intermediaries is a logical consequence of our conclusions drawn from the LuxLeaks- and Panama Papers-revelations. As Rapporteur of the TAXE special committees intermediaries have always been in my focus, since the abuse of loopholes in over-complex tax systems and shell companies is inconceivable without their involvement.”

“The Commission is right to demand a pro-active role in the fight against tax evasion and avoidance and to supplement the Automatic Exchange of Information accordingly. To effectively combat tax base erosion we need a tight legal framework based on the Community method in order to achieve transparency, effectiveness and the protection of the EU single market. Now the Council has to follow the lead of the Commission and the Parliament.”