MEPs urge tougher stand on corporation tax

Multinationals should pay a withholding tax before moving their profits out of EU countries to ensure they are being taxed somewhere, according to a draft report from the European Parliament.

The report, seen by the Irish Examiner, deals with the fallout from the Lux Leaks and follows the European Commission’s investigation of possible special tax deals with multinationals including Apple in Ireland.

The 40-page report makes a wide number of proposals, many going further than the European Commission’s proposals designed to reduce base erosion and profit shifting by multinationals, and introduce the first stage of a common consolidated corporation tax base. A group from the 45-member committee visited the countries accused of working with multinationals to help them minimise or avoid paying tax, including Ireland in May. After amendments are received the report will be voted on by the full Parliament in November which they hope will lead to new EU rules.