Dramatic increase in the number of advance intergroup pricing agreements

20.3.2018

Question for written answer E-001692-18
to the Commission
Rule 130
Stelios Kouloglou (GUE/NGL)

The latest Commission figures released last week show that the number of secret unilateral tax agreements between Member States and businesses rose by 64% between 2015 and 2016. In particular, there were 2 053 unilateral intergroup Advance Pricing Agreements (APAs) in force in the EU in 2016 compared to 1 252 in 2015.

Thus, the number of unilateral APAs in force in Luxembourg increased from 347 in 2014 to 519 in 2015 and 599 in 2016. Behind Luxembourg comes Belgium, where the number of such APAs increased from 157 in 2014 to 396 in 2015 and to 1 091 in 2016. The list of countries involved includes Hungary, Ireland, Malta, the Netherlands and Cyprus.

According to a recent Financial Times survey, since the 2008 global financial crisis, the real tax rate for multinationals has fallen by 9%. By contrast, during that time governments have increased tax rates for ordinary taxpayers by 6%.

In view of the above, will the Commission say:

Since the measures taken in recent years have not only failed to produce results, but have actually prompted Member States to pursue a more aggressive fiscal strategy, how does it intend to deal with those Member States that are continuing to make a mockery of their taxpaying citizens and the other Member States?