Thursday, November 19, 2015

To be sure, there is no proof thus far that Juncker himself promised tax relief to individual companies. He told the European Parliament committee that he had never personally met with consulting firms.  That may be true. But the former head of tax issues for Amazon testified last December that Juncker, in personal meetings between the two, had offered to assist the online retailer in setting up a tax home in Luxembourg. He said that the Luxembourg government had behaved as a "business partner."...Juncker's credibility has been shaken, partly because the accusations aren't just about tax law. They also call into question the image that Juncker has for years been portraying of himself, that of the model European. Now, he stands accused of being the architect of a business model that is based on the extremely un-European principle of steering tax flows away from neighboring countries into Luxembourg's coffers. As Commission president, he demands EU solidarity almost daily when it comes to the refugee crisis. But how credible can he be after years of promoting policies that can accurately be described by the term "tax dumping?"  The question regarding responsibility must be reexamined," says Green Party politician Giegold. "The European Parliament special committee must continue its investigations." The committee is currently scheduled to wrap up its work at the end of November, in accordance with the wishes of powerful Juncker allies, such as Manfred Weber, head of the conservative European People's Party group in European Parliament, and Parliament President Martin Schulz, a Social Democrat. Now, though, pressure to continue the investigation is growing.  In Luxembourg, meanwhile, Juncker's successors are doing what they can to absolve the country of its image as a tax paradise. Recently, Luxembourg's government opened a large university campus in the capital to finally enable companies to do that which they have long claimed to be doing: perform research.

No comments: