Introduction of a tax on profits generated abroad
Question for written answer E-001096-16
to the Commission
Sophie Montel (ENF) , Florian Philippot (ENF)
According to a report by a number of NGOs, in 2012 between USD 500 and 700 billion of the profits made by US multinationals, i.e. a quarter of their total profits for that year, were not taxed in the countries in which they were actually generated. In France, the tax shortfall is EUR 4.5 billion. This loss of revenue is scandalous, as it shifts the burden of fiscal consolidation on to the shoulders of the most vulnerable taxpayers. The recent half-hearted measures to tackle tax evasion are being rendered even less effective by the new tax arrangements introduced in certain Member States (the patent box in Ireland and the new preferential regime for income derived from innovation in Luxembourg).
1. How will the Commission tackle this problem?
2. Will it allow Member States to introduce a tax on profits generated by companies in another country, subject to deduction of the tax they have already paid in the country in question?
3. How does it intend to tackle transfer pricing?