Would the reform be to set a minimum tax and they oppose because have lower? Is this related to the worldwide agreement from some months ago?
> Martijn Nouwen, an assistant law professor at the University of Leiden, recently uncovered and analysed 2,500 confidential documents from the Code of Conduct group, not only showing the non-transparent nature of the EU body tasked with enforcing tax rules, but also their ineffectiveness.
> The Code of Conduct rules have failed to prevent tax evasion, and member states have proven to be lax in enforcing the rules, according to Nouwen.
> In an interview with the German weekly Der Spiegel, he added that the new rules – even if member states reach an agreement on Tuesday – will not solve the most important problems, leaving open the most-used accounting tricks.
> The new rules provide some rules on transparency but will only make public documents “if appropriate.”
> But companies will still be able to evade national laws by setting up letterbox companies in low tax countries, and, most importantly: the rules will only apply to countries, not people – while a lot of the competition between countries is aimed at attracting high-net worth individuals.
It’s not worth destroying your entire tax system, when there will still be these various issues and problems. The bill would hurt Estonia’s competitiveness, but wouldn’t help against tax evaders at Cayman islands for example.
did hungary not veto anything the last year?
Ah, the 2004 expansion. The gift that keeps on giving.
We don’t know anything from the discussions so far. Of course there will be attempts like this to name-and-shame dissenters, but if we even don’t know what it is that is being dissented about, I find it very bad taste.
Most tax evasion happens in Western Europe, but naturally “tax reform” will be written in a way that hurts the poorer parts of Europe while leaving the more politically powerfulregions to carry on as before. Then they wonder why it (sometimes) gets blocked..
I dunno about Hungary, but Estonia’s position could be due to their e-residency policy. Seems to me like the EU tax reform, apart from having the same minimum rate apply to everyone, also 1) ensures companies pay profits where they are made, and 2) tries to increase transparency with company financials. Estonia’s e-residency program (as far as I can tell) results in investments in estonis, as well as tax revenue, incentivised by letting foreign businesses plug into estonia’s technological infrastructure. Under the new EU tax reform, estonia would lose this tax revenue, and the need for transparency could seriously hamper the e-residency program.
The e-residency program moves tax revenue from other countries to estonia with pro-business incentives through a non-transparent mechanism. An anti-tax haven EU bill is being blocked by estonia with their e-residency program. While it is not estonia’s corporate tax rate that makes estonia an attractive place to conduct business (and pay taxes), the other aspects do line up. Whether this e-residence program is actually a tax haven is up to personal interpretation.
**TL:DR estonia’s e-residence program might be made invalid by this anti-tax haven bill, because it shares a couple of properties of tax havens.**
Something like an overarching reform, that would fit every single country’s legal and economic system, is just impossible to create idk why is EU trying to push this to every member.
[deleted]
And here I am thinking it would be Ireland opposing any tax reform.
Hungary has a very low corporate tax rate (9%) which the govt sees as the key to economic success, hence they are actively lobbying in the EU and worldwide against proposed global minimum rates.
Does anyone think EU expanded too fast to the east?
Just someone to blame what most in the EU don’t want. Soon the oligarchs will run Europe completely like the US. Same games now.
13 comments
Would the reform be to set a minimum tax and they oppose because have lower? Is this related to the worldwide agreement from some months ago?
> Martijn Nouwen, an assistant law professor at the University of Leiden, recently uncovered and analysed 2,500 confidential documents from the Code of Conduct group, not only showing the non-transparent nature of the EU body tasked with enforcing tax rules, but also their ineffectiveness.
> The Code of Conduct rules have failed to prevent tax evasion, and member states have proven to be lax in enforcing the rules, according to Nouwen.
> In an interview with the German weekly Der Spiegel, he added that the new rules – even if member states reach an agreement on Tuesday – will not solve the most important problems, leaving open the most-used accounting tricks.
> The new rules provide some rules on transparency but will only make public documents “if appropriate.”
> But companies will still be able to evade national laws by setting up letterbox companies in low tax countries, and, most importantly: the rules will only apply to countries, not people – while a lot of the competition between countries is aimed at attracting high-net worth individuals.
It’s not worth destroying your entire tax system, when there will still be these various issues and problems. The bill would hurt Estonia’s competitiveness, but wouldn’t help against tax evaders at Cayman islands for example.
did hungary not veto anything the last year?
Ah, the 2004 expansion. The gift that keeps on giving.
We don’t know anything from the discussions so far. Of course there will be attempts like this to name-and-shame dissenters, but if we even don’t know what it is that is being dissented about, I find it very bad taste.
Most tax evasion happens in Western Europe, but naturally “tax reform” will be written in a way that hurts the poorer parts of Europe while leaving the more politically powerfulregions to carry on as before. Then they wonder why it (sometimes) gets blocked..
I dunno about Hungary, but Estonia’s position could be due to their e-residency policy. Seems to me like the EU tax reform, apart from having the same minimum rate apply to everyone, also 1) ensures companies pay profits where they are made, and 2) tries to increase transparency with company financials. Estonia’s e-residency program (as far as I can tell) results in investments in estonis, as well as tax revenue, incentivised by letting foreign businesses plug into estonia’s technological infrastructure. Under the new EU tax reform, estonia would lose this tax revenue, and the need for transparency could seriously hamper the e-residency program.
The e-residency program moves tax revenue from other countries to estonia with pro-business incentives through a non-transparent mechanism. An anti-tax haven EU bill is being blocked by estonia with their e-residency program. While it is not estonia’s corporate tax rate that makes estonia an attractive place to conduct business (and pay taxes), the other aspects do line up. Whether this e-residence program is actually a tax haven is up to personal interpretation.
**TL:DR estonia’s e-residence program might be made invalid by this anti-tax haven bill, because it shares a couple of properties of tax havens.**
Something like an overarching reform, that would fit every single country’s legal and economic system, is just impossible to create idk why is EU trying to push this to every member.
[deleted]
And here I am thinking it would be Ireland opposing any tax reform.
Hungary has a very low corporate tax rate (9%) which the govt sees as the key to economic success, hence they are actively lobbying in the EU and worldwide against proposed global minimum rates.
Does anyone think EU expanded too fast to the east?
Just someone to blame what most in the EU don’t want. Soon the oligarchs will run Europe completely like the US. Same games now.