On 8 March 2019, the European Parliament’s Special Committee on Financial Crimes, Tax Evasion, and Tax Avoidance (“TAX3”) has published its final recommendations after concluding its one-year mandate (Link).
In the course of its mandate, the TAX3 Committee met 34 times and organized 4 fact-finding missions to Washington, Latvia, the Isle of Man, Estonia and Denmark. Hundreds of experts were heard, including Commissioners, Ministers, prosecutors, investigative journalists, anti-money laundering- and tax experts, accountants, bankers and NGO representatives. Moreover, the Committee has commissioned six academic studies on subjects of special interest.
The report, inter alia, states, that:
- Since 2008, the banking industry has dramatically changed. There are less licenses now than in 2008 but no decrease of deposits since the implementation of the Common Reporting Standard.
- Is concerned that according to the OECD, CBI and RBI schemes could be misused to undermine the common reporting standard (CRS) due diligence procedures, leading to inaccurate or incomplete reporting under the CRS, in particular when not all jurisdictions of tax residence are disclosed to the financial institution; notes that in the OECD’s view, the visa schemes which are potentially high-risk for the integrity of the CRS are those that give a taxpayer access to a low personal income tax rate of less than 10 % on offshore financial assets, and do not require a significant physical presence of at least 90 days in the jurisdiction offering the golden visa scheme;
The debate and the vote on the final report will take place at the March II Plenary part-session in Strasbourg (25-28 March 2019).