EU Parliament creates permanent tax subcommittee

By Francesca Amaddeo, Researcher, Tax Law, Competence Centre (SUPSI), Manno, Switzerland

In a welcome move, the European Parliament, in its plenary session on 18 June for the first time approved the creation of a permanent subcommittee on tax matters.

Made up of 30 members, the new subcommittee will investigate financial crimes in general, encompassing tax evasion, tax avoidance, and money laundering as well as financial transparency for taxation purposes.

In the aftermath of tax avoidance scandals, such as Panama Papers and LuxLeaks, the European Parliament’s Economic and Monetary Affairs Committee coordinators proposed to create a permanent subcommittee on tax and financial crimes.

Building on the work made by previous special and inquiry committees, ad hoc created to address different issues, the new subcommittee will become the flagship of the EU’s fight against illicit tax practices.

“There is an urgent and continuous need for reform of the rules so that international, EU and national tax systems are fit for the new economic, social and technological challenges of the 21st century”, the EU Parliament’s special committee,TAX3, said in its 2019 final report.

The Greens/EFA group has long called for such a committee, as German politician and Greens member, Sven Giegold, said.

The EU Commission welcomed this new group, stating that it shall be deemed as a key forum to take forward this fight for tax justice.

Some thoughts

This development represents an important step forward in recognizing the importance of tax matters and follows the direction of the international community toward transparency and cooperation.

The consciousness of harmful tax practices carried forward by clever taxpayers fuels a passionate desire to keep honest citizens and businesses intact.

EU wishes to become a leader in tackling base erosion and profit shifting as well as in guide legislation reforms.

A new start is coming, laying down the landmarks of the future of taxation! 

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Francesca Amaddeo

Lecturer-researcher at Tax Law Competence Centre, Department of Business Economics, Health and Social Care, University of Applied Science and Arts of Southern Switzerland (SUPSI)

Dr. Francesca Amaddeo, PhD in European law and national legal systems, is an Italian lawyer that works as Lecturer-researcher at the Tax Law Competence Centre, Department of Business Economics, Health and Social Care, University of Applied Science and Arts of Southern Switzerland (SUPSI).

Latest posts by Francesca Amaddeo (see all)

• International taxation: two-pillar plan and the OECD mainstream - February 28, 2022
• Swiss federal act on implementation of international tax agreements: ready for January 2022 - November 23, 2021
• EU Commission seeks to ease withholding tax mechanism on cross-border investments - October 26, 2021
• CJEU to review German transfer pricing obligation: do national tax rules affect EU freedoms? - October 11, 2021
• Switzerland advances withholding tax reform - May 17, 2021

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