Smaller EU countries cannot be denied the remaining flexibilities in tax policies

Former Prime Minister Alfred Sant said that the smaller and peripheral countries of the European Union should not be denied the remaining flexibility in tax policies. It is unfair to impose tax harmonisation to claim to curb tax evasion by multinational companies, Dr. Sant told the European Parliament in Strasbourg during the debate on the ‘Commission decision adopted on the Corporate Tax package’.
Dr. Sant said that so long as it introduces better transparency in tax matters over the European Union, the Commission decision on the corporate tax package is welcome. ‘However, where it serves as part of a wider programme to introduce harmonisation of taxation across member states, the package must be critically scrutinised. Member states, especially in the Eurozone, are implementing uniform rules in financial and economic decision making. This is working to the advantage of members having better economic endowments. One cannot deny to those who have less endowments the remaining flexibility in tax policies, especially smaller and peripheral countries.
Dr. Sant said that current accounting systems to measure profits and expenses date from when manufacturing was the main sector of economies. As services and digital activities, accompanied with a globalized mode of production and marketing, become increasingly predominant, the task of determining profits and expenses is now much more complex.
Dr. Sant said that in the circumstances the easiest way by which to claim to be curbing tax evasion by multinational companies, is by imposing tax harmonisation, using existing accounting methods. ‘This is unfair. Indeed, the characteristic of any corporate tax package should be flexibility, equally applicable to all, not only to the bigger economies as has happened with the ‘Stability and Growth Pact’ rules.’ remarked Alfred Sant.

Maltese Version – L-IŻGĦAR PAJJIŻI TAL-UE M’GĦANDHOMX JIĊĊAĦĦDU MILL-FTIT FLESSIBILITA` LI FADLILHOM FIT-TASSAZZJONI

Alfred Sant, Kap tad-Delegazzjoni Laburista fil-Parlament Ewropew, qal li l-iżgħar pajjiżi fl-UE u dawk li qegħdin fil-periferija tagħha, ma għandhomx ikunu miċħuda mill-ftit flessibilita` li fadlilhom fil-politika tat-tassazzjoni. Mhux ġust li tkun imposta l-armonizzazzjoni tat-taxxa bl-għajta li titnaqqas l-evażjoni tat-taxxa mill-kumpaniji multi-nazzjonali. Dr Sant qal dan waqt li l-Parlament Ewropew kien qed jiddiskuti d-deċiżjoni tal-Kummissjoni Ewropea fuq il-‘Corporate Tax package’ fi Strasburgu.
Dr. Sant qal li jilqa’ d-deċiżjoni tal-Kummissjoni Ewropea dwar il-‘Corporate Tax packages’ sakemm dan jintroduċi trasparenza aħjar fit-taxxa fi ħdan l-UE. “Imma, fejn dan iservi bħala parti minn programm ikbar biex tkun introdotta l-armonizzazzjoni tat-taxxa fl-istati membri, il-pakkett irid ikun mifli b’mod kritiku. L-istati membri, speċjalment fiż-żona ewro, qed jimplimentaw regoli ugwali fid-deċiżjonijiet dwar finanzi u ekonomija. Dan il-proċess qed jaħdem tajjeb fl-istati membri b’ċirkostanzi ekonomiċi aħjar. Iżda wieħed ma jistax iċaħħad lil dawk il-pajjiżi żgħar u fil-periferija tal-UE il-ftit flessibilita’ li fadlilhom.’
Dr Sant qal li s-sistemi attwali tal-kontabilita` li jikkalkulaw il-profitti u l-ispejjeż jafu ż-żmien meta l-manifattura kienet is-settur ewlieni tal-ekonomija. Filwaqt li s-servizzi u l-attivitajiet diġitali, flimkien mal-produzzjoni globalizzata u l-‘marketing’ saru iktar dominanti, il-mod kif ikunu determinati l-profitti u l-ispejjeż issa qed isir ħafna aktar kumpless.
“Jidher li bħalissa l-aktar mod sempliċi kif wieħed jgħid li se jikkontrolla l-evażjoni tat-taxxa milll-kumpaniji multinazzjonali, hija l-impożizzjoni tal-armonizzazzjoni tat-taxxa bil-metodi eżistenti ta’ kontabilita’. Dan mhux ġust. Il-karatteristika ta’ kwalunkwe ‘Corporate Tax package’ għandha tkun il-flessibilita`, applikata bl-istess mod għal kulħadd, mhux biss lill-ekonomiji l-kbar kif ġara bir-regoli tal-Patt tal-Istabbilita’ u tat-Tisħiħ”. qal Alfred Sant.