“We have nothing to hide,” says Gramegna

(CS/CBu) The so-called TAXE committee of the European Parliament on Monday visited Luxembourg to meet with representatives of the financial sector, government and parliament to discuss tax rulings schemes.

“We want to work with our partners in the EU and have nothing to hide,” Finance Minister Pierre Gramegna concluded at the end of the visit at a press conference on Monday afternoon. The Finance Minister added that reform efforts were already underway and that Luxembourg was working towards “more transparency and tax justice.”

Nine delegates of the commission under Alain Lamassoure had met with representatives of PwC, Luxembourg for Finance and Luxembourg for Business, MPs, as well as Transparency International.

Some 30 people had gathered outside of the Chamber of Deputies in a protest for more tax justice.

Lamassoure commented that without LuxLeaks, the committee would never have been set up, thanking the journalists who had uncovered the large-scale tax rulings practice. He added that the revelations had made him and many other politicans realise the extent of the problem and a system that produces “immorality.”

Europe was aware that something needs to change, he commented. The root of the issue needs to be addressed, Lamassoure added, with the TAXE committee charged with analysing tax regimes across member states.

Over the coming weeks, visits to Ireland, the UK, Belgium and the Netherlands are planned.

Criticism of Luxembourg

Elisa Ferreira, also a member of the committee, added that it needed to be ensured that action would follow words, saying that excessive tax avoidance by companies in light of the economic crises in several European countries was hard to comprehend.

Gramegna meanwhile reiterated that efforts to tackle tax rulings needed to be international, with the goal of a level playing field between countries. “Our citizens demand more tax and social justice,” he said, adding that countries needed to “act together and deliver results.”

The upcoming Luxembourg presidency of the Council of the European Union would offer an opportunity to set ambitious goals, the minister added.

However, not everyone was convinced by Luxembourg's efforts following the LuxLeaks scandal. Committee member Sven Giegold, for example, on Twitter criticised the parliament for defending the “theft” of taxes, because it happened within the legal framework. 

Another issue up for the debate it the publication of rulings information. Despite Luxembourg support for an automatic exchange of tax rulings policy within the EU, Gramegna said that they could not be made publicly available, citing reasons of confidentiality.

A request for a list of all rulings, in order for the committee to assess the financial impact of the scheme, has not yet been answered by Luxembourg, Ferreira remarked.