In November 2014, the LuxLeaks scandal revealed details on hundreds of deals between multinational companies and Luxembourg. These agreements allowed companies to establish complex structures for corporate financing in order to reduce their tax bills to close to nothing.
The European Commission has drawn up a proposal to share information on these deals between Member States but is Commissioner Moscovici’s sunlight proposal the best disinfectant?
Is transparency enough to reform corporate tax structures? Would Commissioner Vestager’s state aid powers be more appropriate? What’s the best way for the Commission to tackle tax evasion?