Local view for "http://purl.org/linkedpolitics/eu/plenary/2010-02-08-Speech-1-100"

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"en.20100208.14.1-100"2
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"Mr President, Commissioner, today we are debating a package of economically and politically contentious proposals that are supposed to bring about significantly improved cooperation in the field of taxation. Tax fraud is undoubtedly a major problem which reduces State budget revenues. However, what are the causes of tax evasion and what are the motives of those who resort to tax fraud? Firstly, high rates of tax. The higher taxes are, the more taxpayers will look for ways to circumvent their tax obligations. We should bear this well-known economic truth in mind particularly today, when most politicians assume that public finance deficits will be resolved through higher taxes, in other words, on the revenue side of the budget rather than through major cuts in spending. I would like to make one more remark, which is that tax havens exist for this very reason, because people move their capital to locations with lower taxes. If you want to shut down or limit the existence of tax havens, you must cut taxes. The second important reason for tax evasion is the opacity and complexity of tax systems. The more exemptions, the more fraud. Statistical data and various studies confirm that the complications of, for example, VAT collection, are caused primarily by confusing explanations and the thousands of widely-varying exemptions. Unfortunately, neither the Commission nor MEPs are suggesting that Member States embark on tax cuts or fundamental corrections that might bring about transparency in tax jurisdictions. The contentious proposals are as follows: the introduction of the principle that there is an obligation to share information on taxpayers; secondly, the mandatory information on taxpayers is precisely defined and is clearly highly sensitive; thirdly, the obligation to share information on all types of tax is being applied for the first time and fourthly – a legislative novelty – banking secrecy is breached."@en1
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