Debate: Reforming the EU list of tax havens
Date: WEDNESDAY, 20 JANUARY 2021
Speaker: Paolo Gentiloni
Language: EN

The EU list of non-cooperative jurisdictions will continue to play an important role in the years to come. And, I think, especially at this moment in time, in order to help overcome the economic and social crisis also caused by the pandemic, we have to strengthen these tools. The Commission announced a commitment to work to strengthen these tools in July 2020, and this commitment will continue. Of course, there is a need to improve tax good governance, not only globally, but also within the EU. Member States are subject to reviews under various tools, and these tools include the Code of Conduct for business taxation, whose reform is an absolute priority, and infringement procedures in the areas directly covered by EU law. I count on the European Parliament to continue pushing for an ambitious agenda. I am glad to hear the Council’s commitment in this direction.  The Commission actively engaged with Member States in the different Council groups to discuss the follow-up to the communication on tax good governance in Europe and beyond. As a result, the Council adopted conclusions, as it was reminded, which take note of the communication and reiterate the importance of the principles of tax good governance and the need to enhance the EU listing process. This is an important step as it recognises that more work is needed. I have in mind, in particular, the revision of the Code of Conduct for business taxation. Any change in this respect will have a major impact on the EU listing process. The progress on the discussions of minimally effective taxation in the context of Pillar Two of the OECD’s report are accordingly crucial for the code and, consequently, also for the EU listing process, and will have an effect on our fair taxation criterion, including zero-tax jurisdictions.  The EU listing also requires improved administrative cooperation, in particular through the exchange of tax information. This is why the Commission will continue to work on extending the EU list criteria to cover effective exchanges of information under the Common Reporting Standard, country-by-country reporting between tax authorities and beneficial ownership information. I believe that it is also necessary that we focus on the right jurisdictions, and consider whether any relevant jurisdiction is missing from our radar. This is the reason why the Commission is working on a revision of the scoreboard, and uses enhanced selection criteria for identifying jurisdictions and prioritising their screening under the EU listing process. The Commission is also looking forward to assessing the actions undertaken by Member States towards enacting domestic defensive measures vis-à-vis listed jurisdictions. I reiterate on this occasion that we are ready to take any necessary initiatives in case the results are not in line with our expectations, including by way of legislative proposal. Finally, I believe that the Council should report regularly to the Parliament regarding its work on non-cooperative jurisdictions. This would improve the mutual understanding of the process and would help to focus on improving the EU listing process.