EU finance ministers reach preliminary agreement on rules to counter corporate tax avoidance.
RESENDING WITH SHOTLIST AND FULL
SCRIPT
SHOWS:
LUXEMBOURG, LUXEMBOURG (JUNE 17, 2016) (
EBS -
ACCESS ALL)
1. EUROPEAN COMMISSIONER FOR
EURO AND SOCIAL DIALOGUE VALDIS DOMBROVSKIS AND EUROGROUP
CHIEF AND DUTCH FINANCE MINISTER JEROEN DIJSSELBLOEM ARRIVING FOR
NEWS CONFERENCE
2. VARIOUS OF JOURNALISTS AHEAD OF NEWS CONFERENCE
3. (SOUNDBITE) (
English) EUROGROUP CHIEF AND DUTCH FINANCE MINISTER JEROEN DIJSSELBLOEM, SAYING:
"It is very hard to predict what the effect would be because I don't think companies will immediately stop with their tax planning. But their tax planning will certainly be adjusted. And it is also difficult to predict what money ends up in what national coffin."
4. JOURNALIST ASKING QUESTION
5. (SOUNDBITE) (English) EUROGROUP CHIEF AND DUTCH FINANCE MINISTER JEROEN DIJSSELBLOEM, SAYING:
"The reason why it's difficult to predict is because if you change national legislation you may think that your tax revenues will go up. But it may also be an effect that some companies leave your country and your tax revenues may go down. But of course if we work together closely on this the options for companies to move around and shift around and shift their profits around would become limited over the course of the years. And that is exactly what we are doing. And that is why the only way to do it is to do it jointly. So yes, it will have a major impact. Both in the size of the taxes that companies will pay, need to pay, but also in the distribution, where will they pay it."
6. JOURNALIST ASKING QUESTION.
7. DOMBROVSKIS AND DIJSSELBLOEM DURING NEWS CONFERENCE
8.
END OF NEWS CONFERENCE
STORY:
European Union states reached preliminary agreement on Friday (June 17) on new rules to counter corporations' tax avoidance, but it watered down some proposals after lobbying by smaller countries, such as
Belgium and
Austria.
Ministers were under pressure to approve new rules proposed by the
European Commission in January, after revelations in the so-called
Panama Papers and Luxleaks cases.
After months of wrangling, EU finance ministers in a regular meeting in
Luxembourg backed an amended version of the
Commission proposals, excluding some controversial measures and delaying others.
The deal is suspended until Monday. If no country raises objections by then, the agreement will take effect.
The Belgian and
Czech finance ministers asked for the extra time to sort out pending technical issues.
"The reason why it's difficult to predict is because if you change national legislation you may think that your tax revenues will go up. But it may also be an effect that some companies leave your country and your tax revenues may go down. But of course if we work together closely on this the options for companies to move around and shift around and shift their profits around would become limited over the course of the years. And that is exactly what we are doing. And that is why the only way to do it is to do it jointly. So yes, it will have a major impact. Both in the size of the taxes that companies will pay, need to pay, but also in the distribution, where will they pay it,"
Jeroen Dijsselbloem, the chair of the talks and
Dutch Finance Minister, told a news conference after the meeting.
Corporate tax practices cost EU states an estimated 70 billion euros ($76.10 billion) a year in lost revenues, according to an
EU Parliament report. But the plan to curtail them is less ambitious than what was originally planned.
- published: 18 Jun 2016
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