Effective prohibition of shell companies
17.5.2017
Question for written answer P-003388-17
to the Commission
Rule 130
Jeppe Kofod (S&D)
As the Commission must know, a number of cases are currently pending before the EU Court of Justice as to whether and when companies which have no employees, independent economic activities or other conventional features of real undertakings, and which are set up solely with a view to avoiding tax by acting as a channel for moving assets to other companies set up in tax havens, can be said to be legal under EC law[1].
There can be no doubt that the existing legislation in this area is not sufficiently clear (and hence effective) to prevent shell companies being used to move assets out of the jurisdiction of European tax authorities. In light of the above:
- 1.Does the Commission take the view that current EU legislation is sufficiently clear to effectively and unequivocally determine whether such company structures are legal?
- 2.In the Commission’s legal opinion, is it currently legal to make use of such shell companies to channel wealth out of the jurisdiction of European tax authorities and into tax havens?
- 3.Does the Commission have plans to propose new or revised legislation to ensure that such shell companies are clearly and effectively classified as illegal?
- [1] http://www.dr.dk/nyheder/penge/luxembourg-finten-goldman-sachs-kan-skattefrit-hive-milliarder-ud-af-dong