The Role of the Financial Sector in Tax Planning

20-05-2016

This document was prepared by Policy Department A at the request of the TAXE2 Special Committee of the European Parliament. The study reviews common principles behind financial sector practices that may feature in tax avoidance or evasion. Mechanisms include the exploitation of mismatches in international taxation and financial sophistication; and the exploitation of the qualification of corporate cash flows. The paper issues concrete recommendations with respect to international cooperation, and the completion of Banking Union.

This document was prepared by Policy Department A at the request of the TAXE2 Special Committee of the European Parliament. The study reviews common principles behind financial sector practices that may feature in tax avoidance or evasion. Mechanisms include the exploitation of mismatches in international taxation and financial sophistication; and the exploitation of the qualification of corporate cash flows. The paper issues concrete recommendations with respect to international cooperation, and the completion of Banking Union.