Draft resolution
1Sound tax systems are the cornerstone of public finances:
they underpin democratic governance, State authority, macroeconomic
stability and social cohesion. This delicate balance relies on tax
compliance by all tax payers, be they individuals or enterprises.
It is extremely worrying that certain activities by secrecy jurisdictions,
tax havens and offshore financial centres facilitate massive tax
avoidance, evasion and fraud which cause serious harm to the public
interest of all Council of Europe member States, as well as many
other countries, in particular the developing ones.
Tabled by Mr Fernand BODEN, Mr Urs SCHWALLER, Mr Bernard MARQUET, Mr Joseph FALZON, Ms Lydia MUTSCH, Mr Norbert HAUPERT, Ms Elisabeth SCHNEIDER-SCHNEITER, Ms Doris FIALA, Mr Maximilian REIMANN, Mr Raphaël COMTE, Ms Anne BRASSEUR, Ms Meritxell MATEU, Mr Joachim HÖRSTER
In the draft resolution, before paragraph 1, insert the following paragraph:
"According to the OECD, four key factors are used to determine a tax haven: the fact that a jurisdiction imposes no or only nominal taxes; that it lacks transparency; that there are laws or administrative practices preventing the effective exchange of information; and that there is no requirement for the activity to be substantial."
Tabled by Mr Bernard MARQUET, Ms Doris FIALA, Mr Urs SCHWALLER, Ms Meritxell MATEU, Mr Jean-Charles GARDETTO, Mr Joseph FALZON, Mr Fernand BODEN, Ms Anne BRASSEUR, Mr Pedro AGRAMUNT, Mr Josep Anton BARDINA PAU, Mr Arcadio DÍAZ TEJERA, Ms Milica MARKOVIĆ, Mr Fiorenzo STOLFI, Ms Chiora TAKTAKISHVILI, Mr Giorgi KANDELAKI, Mr Raphaël COMTE, Mr Maximilian REIMANN, Ms Elisabeth SCHNEIDER-SCHNEITER, Mr Alfred HEER, Ms Nicole MANZONE-SAQUET, Ms Lydia MUTSCH, Mr Norbert HAUPERT, Mr Mikheil MACHAVARIANI
In the draft resolution, paragraph 1, replace the words "activities by secrecy jurisdictions, tax havens and offshore financial centres" with the following words: "state activities".
2The Parliamentary Assembly is concerned about the extent of
the offshore financial system, in particular tax havens, and its
impact on public finances, stability of financial markets and society
at large. With all countries having surrendered some of their sovereignty
to globalisation and the global economy, tackling global distortions
due to harmful or predatory tax practices is both a moral duty and
a common cause.
3Thanks to growing public outcries, international co-operation
has intensified, notably at the G20 level, to tackle the root problems
concerning tax havens: bank secrecy, lack of transparency and effective
public oversight, regulatory dumping, predatory tax arrangements
and abusive accounting techniques within multinational companies
(notably abusive transfer pricing). However, the situation is far
from satisfactory and further progress is needed to close legal
gaps and loopholes and to ensure more effective consolidated supervision
of the offshore financial system and jurisdictions considered as
tax havens.
Tabled by Mr Bernard MARQUET, Ms Doris FIALA, Mr Urs SCHWALLER, Ms Meritxell MATEU, Mr Jean-Charles GARDETTO, Mr Joseph FALZON, Mr Fernand BODEN, Ms Anne BRASSEUR, Mr Pedro AGRAMUNT, Mr Josep Anton BARDINA PAU, Mr Arcadio DÍAZ TEJERA, Ms Milica MARKOVIĆ, Mr Fiorenzo STOLFI, Ms Chiora TAKTAKISHVILI, Mr Giorgi KANDELAKI, Mr Raphaël COMTE, Mr Maximilian REIMANN, Ms Elisabeth SCHNEIDER-SCHNEITER, Mr Alfred HEER, Ms Nicole MANZONE-SAQUET, Ms Lydia MUTSCH, Mr Norbert HAUPERT, Mr Mikheil MACHAVARIANI
In the draft resolution, paragraph 3, replace the words "offshore financial system and jurisdictions considered as tax havens" with the following words:
"global financial system".
4The Assembly therefore calls on the Bank for International
Settlements (BIS), the International Monetary Fund (IMF) and the
Organisation for Economic Co-operation and Development (OECD) to
step up their action – complementing each other’s efforts whenever
feasible – on measuring and analysing financial flows to and from
the offshore financial centres and jurisdictions deemed tax havens,
as well as their interaction with the mainstream economic activity
of other States.
Tabled by Mr Bernard MARQUET, Ms Doris FIALA, Mr Urs SCHWALLER, Ms Meritxell MATEU, Mr Jean-Charles GARDETTO, Mr Joseph FALZON, Mr Fernand BODEN, Ms Anne BRASSEUR, Mr Pedro AGRAMUNT, Mr Josep Anton BARDINA PAU, Mr Arcadio DÍAZ TEJERA, Ms Milica MARKOVIĆ, Mr Fiorenzo STOLFI, Ms Chiora TAKTAKISHVILI, Mr Giorgi KANDELAKI, Mr Raphaël COMTE, Mr Maximilian REIMANN, Ms Elisabeth SCHNEIDER-SCHNEITER, Mr Alfred HEER, Ms Nicole MANZONE-SAQUET, Ms Lydia MUTSCH, Mr Norbert HAUPERT, Mr Mikheil MACHAVARIANI
In the draft resolution, paragraph 4, replace the words “the offshore financial centres and jurisdictions deemed tax havens, as well as their interaction with the mainstream economic activity of other States” with the following word:
"States".
5The Assembly also invites the IMF and the OECD to:
5.1enhance surveillance of their
member States' tax regimes and to stimulate improvements aimed at
eliminating harmful tax practices;
5.2study ways of strengthening corporate social responsibility
and ethics and make proposals for defining more clearly the responsibilities
of multinational enterprises towards the society in all countries where
they operate;
5.3issue recommendations to their member States to introduce
country-by-country reporting with a view to increased corporate
tax accountability and disclosure of financial information (notably
on costs, profits and taxes paid) concerning the activities of multinational
companies in all countries in which they operate and across all
business sectors, starting with the financial sector.
Tabled by Mr Valeriy SUDARENKOV, Mr Alexey PUSHKOV, Mr Anvar MAKHMUTOV, Mr Igor LEBEDEV, Mr Alexey KNYSHOV
In the draft resolution, after paragraph 5.3, insert the following paragraph:
"consider the possibility of setting minimum acceptable tax rates in tax havens to minimise national budgets' losses."
6In this context, the Assembly welcomes the entry into force,
in 2011, of the Convention on Mutual Administrative Assistance in
Tax Matters as amended by the Additional Protocol (CETS No. 208)
after the launching of it in 2010. The Council of Europe and the
OECD should vigorously promote this instrument, not only among their
member States and their dependent territories, but also among their
economic partners across the globe. Moreover, they could jointly
assess the implementation of this convention in the near future.
7The Assembly hails the outcome of the G20 Cannes Summit (3-4
November 2011) where the leaders of G20 countries committed to sign
the amended Convention on Mutual Administrative Assistance in Tax
Matters, strongly encouraged other jurisdictions to join the convention
and undertook to “consider exchanging information automatically
on a voluntary basis as appropriate and as provided for in the convention”.
8Moreover, the Assembly strongly supports steps taken by the
European Union towards gradual harmonisation of tax practices among
its member States and, in particular, efforts to introduce automatic exchange
of information for certain categories of income and capital as from
2015. It considers that this process could be accelerated and that
similar efforts should be undertaken by non-European Union countries.
Tabled by Mr Bernard MARQUET, Ms Doris FIALA, Mr Urs SCHWALLER, Ms Meritxell MATEU, Mr Jean-Charles GARDETTO, Mr Joseph FALZON, Mr Fernand BODEN, Ms Anne BRASSEUR, Mr Pedro AGRAMUNT, Mr Josep Anton BARDINA PAU, Mr Arcadio DÍAZ TEJERA, Ms Milica MARKOVIĆ, Mr Fiorenzo STOLFI, Ms Chiora TAKTAKISHVILI, Mr Giorgi KANDELAKI, Mr Raphaël COMTE, Mr Maximilian REIMANN, Ms Elisabeth SCHNEIDER-SCHNEITER, Mr Alfred HEER, Ms Nicole MANZONE-SAQUET, Ms Lydia MUTSCH, Mr Norbert HAUPERT, Mr Mikheil MACHAVARIANI
In the draft resolution, paragraph 8, delete the second sentence.
9In the same spirit, the Assembly urges the European Union
member States to support efforts to put in place country-by-country
reporting obligations (notably on costs, profits and taxes paid)
in respect of accounts of multinational enterprises that are registered
or operate in the European Union. This practice should gradually be
extended to all Council of Europe and OECD member countries, as
well as G20 member States.
Tabled by Mr Bernard MARQUET, Ms Doris FIALA, Mr Urs SCHWALLER, Ms Meritxell MATEU, Mr Jean-Charles GARDETTO, Mr Joseph FALZON, Mr Fernand BODEN, Ms Anne BRASSEUR, Mr Pedro AGRAMUNT, Mr Josep Anton BARDINA PAU, Mr Arcadio DÍAZ TEJERA, Ms Milica MARKOVIĆ, Mr Fiorenzo STOLFI, Ms Chiora TAKTAKISHVILI, Mr Giorgi KANDELAKI, Mr Raphaël COMTE, Mr Maximilian REIMANN, Ms Elisabeth SCHNEIDER-SCHNEITER, Mr Alfred HEER, Ms Nicole MANZONE-SAQUET, Ms Lydia MUTSCH, Mr Norbert HAUPERT, Mr Mikheil MACHAVARIANI
In the draft resolution, delete paragraph 9.
10With a view to holding governments to account in tax matters,
the Assembly urges national parliaments to:
10.1examine domestic tax standards, policies and collection
procedures in order to spot artificial tax minimisation techniques
which may be legal but not ethical, and propose legislative steps
to remedy the distortions thus detected;
10.2closely monitor the work of governments on the enforcement
of national tax laws, the administration of tax collection and the
respect of international commitments in tax matters;
10.3ensure in-depth scrutiny and revision, if need be, of
any draft bilateral tax agreements, in particular with secrecy jurisdictions
and countries considered as tax havens, before their ratification.
Tabled by Mr Bernard MARQUET, Ms Doris FIALA, Mr Urs SCHWALLER, Ms Meritxell MATEU, Mr Jean-Charles GARDETTO, Mr Joseph FALZON, Mr Fernand BODEN, Ms Anne BRASSEUR, Mr Pedro AGRAMUNT, Mr Josep Anton BARDINA PAU, Mr Arcadio DÍAZ TEJERA, Ms Milica MARKOVIĆ, Mr Fiorenzo STOLFI, Ms Chiora TAKTAKISHVILI, Mr Giorgi KANDELAKI, Mr Raphaël COMTE, Mr Maximilian REIMANN, Ms Elisabeth SCHNEIDER-SCHNEITER, Mr Alfred HEER, Ms Nicole MANZONE-SAQUET, Ms Lydia MUTSCH, Mr Norbert HAUPERT, Mr Mikheil MACHAVARIANI
In the draft resolution, delete paragraph 10.3.
Tabled by Ms Olga BORZOVA, Mr Alexey PUSHKOV, Mr Anvar MAKHMUTOV, Mr Igor LEBEDEV, Mr Valeriy SUDARENKOV
In the draft resolution, after paragraph 10.3, insert the following paragraph:
"adopt national legal provisions allowing legal entities registered in offshore territories to carry out business activities in the country only if they disclose their founding members and ultimate beneficiaries."
11Convinced that tax compliance by all tax payers and due diligence
by all intermediaries in tax matters are essential to upholding
good governance, justice and prosperity, the Assembly calls on the
Council of Europe member States to:
11.1step up pressure, particularly on those States that have
direct influence over secrecy jurisdictions and tax havens identified
in this report with a view to enhancing their co-operation in tax
matters and phasing out fiscal bank secrecy;
Tabled by Mr Bernard MARQUET, Ms Doris FIALA, Mr Urs SCHWALLER, Ms Meritxell MATEU, Mr Jean-Charles GARDETTO, Mr Joseph FALZON, Mr Fernand BODEN, Ms Anne BRASSEUR, Mr Pedro AGRAMUNT, Mr Josep Anton BARDINA PAU, Mr Arcadio DÍAZ TEJERA, Ms Milica MARKOVIĆ, Mr Fiorenzo STOLFI, Ms Chiora TAKTAKISHVILI, Mr Giorgi KANDELAKI, Mr Raphaël COMTE, Mr Maximilian REIMANN, Ms Elisabeth SCHNEIDER-SCHNEITER, Mr Alfred HEER, Ms Nicole MANZONE-SAQUET, Ms Lydia MUTSCH, Mr Norbert HAUPERT, Mr Mikheil MACHAVARIANI
In the draft resolution, paragraph 11.1, replace the words "secrecy jurisdictions and tax havens identified in this report" with the following words:
"jurisdictions providing secrecy".
11.2identify and eliminate legal provisions permitting the
holding of anonymous accounts, off-balance-sheet bookkeeping and
bearer shares;
Tabled by Mr Bernard MARQUET, Ms Doris FIALA, Mr Urs SCHWALLER, Ms Meritxell MATEU, Mr Jean-Charles GARDETTO, Mr Joseph FALZON, Mr Fernand BODEN, Ms Anne BRASSEUR, Mr Pedro AGRAMUNT, Mr Josep Anton BARDINA PAU, Mr Arcadio DÍAZ TEJERA, Ms Milica MARKOVIĆ, Mr Fiorenzo STOLFI, Ms Chiora TAKTAKISHVILI, Mr Giorgi KANDELAKI, Mr Raphaël COMTE, Mr Maximilian REIMANN, Ms Elisabeth SCHNEIDER-SCHNEITER, Mr Alfred HEER, Ms Nicole MANZONE-SAQUET, Ms Lydia MUTSCH, Mr Norbert HAUPERT, Mr Mikheil MACHAVARIANI
In the draft resolution, paragraph 11.2, replace the word “eliminate” with the following words:
“adapt to international standards”.
11.3ensure that all entities (notably trusts and funds) are
properly registered and beneficial ultimate ownership disclosed,
in particular in respect of capital flows originating in or destined
for European countries and their dependent territories;
11.4ensure that all corporate registries provide a set of
standard information on registered entities’ shareholders, boards,
directors and historical background and allow for online access
to such data;
Tabled by Mr Bernard MARQUET, Ms Doris FIALA, Mr Urs SCHWALLER, Ms Meritxell MATEU, Mr Jean-Charles GARDETTO, Mr Joseph FALZON, Mr Fernand BODEN, Ms Anne BRASSEUR, Mr Pedro AGRAMUNT, Mr Josep Anton BARDINA PAU, Mr Arcadio DÍAZ TEJERA, Ms Milica MARKOVIĆ, Mr Fiorenzo STOLFI, Ms Chiora TAKTAKISHVILI, Mr Giorgi KANDELAKI, Mr Raphaël COMTE, Mr Maximilian REIMANN, Ms Elisabeth SCHNEIDER-SCHNEITER, Mr Alfred HEER, Ms Nicole MANZONE-SAQUET, Ms Lydia MUTSCH, Mr Norbert HAUPERT, Mr Mikheil MACHAVARIANI
In the draft resolution, paragraph 11.4, delete the word “online”.
11.5support efforts to harmonise European corporate tax policy,
such as through adoption of the common consolidated tax base as
a first step towards taxing profits of multinational corporations
on the basis of a formula that takes account of genuine economic
substance (namely sales turnover, assets invested and employment)
in the various countries of activity;
Tabled by Mr Bernard MARQUET, Ms Doris FIALA, Mr Urs SCHWALLER, Ms Meritxell MATEU, Mr Jean-Charles GARDETTO, Mr Joseph FALZON, Mr Fernand BODEN, Ms Anne BRASSEUR, Mr Pedro AGRAMUNT, Mr Josep Anton BARDINA PAU, Mr Arcadio DÍAZ TEJERA, Ms Milica MARKOVIĆ, Mr Fiorenzo STOLFI, Ms Chiora TAKTAKISHVILI, Mr Giorgi KANDELAKI, Mr Raphaël COMTE, Mr Maximilian REIMANN, Ms Elisabeth SCHNEIDER-SCHNEITER, Mr Alfred HEER, Ms Nicole MANZONE-SAQUET, Ms Lydia MUTSCH, Mr Norbert HAUPERT, Mr Mikheil MACHAVARIANI
In the draft resolution, delete paragraph 11.5.
11.6move towards the automatic exchange of information in
tax matters and ensure good use of safeguards for personal data
protection, notably the Convention for the Protection of Individuals
with regards to Automatic Processing of Personal Data (ETS No. 108)
and its Additional Protocol (ETS No. 181), including with their
international economic partners;
Tabled by Mr Bernard MARQUET, Ms Doris FIALA, Mr Urs SCHWALLER, Ms Meritxell MATEU, Mr Jean-Charles GARDETTO, Mr Joseph FALZON, Mr Fernand BODEN, Ms Anne BRASSEUR, Mr Pedro AGRAMUNT, Mr Josep Anton BARDINA PAU, Mr Arcadio DÍAZ TEJERA, Ms Milica MARKOVIĆ, Mr Fiorenzo STOLFI, Ms Chiora TAKTAKISHVILI, Mr Giorgi KANDELAKI, Mr Raphaël COMTE, Mr Maximilian REIMANN, Ms Elisabeth SCHNEIDER-SCHNEITER, Mr Alfred HEER, Ms Nicole MANZONE-SAQUET, Ms Lydia MUTSCH, Mr Norbert HAUPERT, Mr Mikheil MACHAVARIANI
In the draft resolution, delete paragraph 11.6.
Tabled by Mr Fernand BODEN, Mr Urs SCHWALLER, Mr Bernard MARQUET, Mr Joseph FALZON, Ms Lydia MUTSCH, Mr Norbert HAUPERT, Ms Elisabeth SCHNEIDER-SCHNEITER, Ms Doris FIALA, Mr Maximilian REIMANN, Mr Raphaël COMTE, Ms Anne BRASSEUR, Ms Meritxell MATEU, Mr Joachim HÖRSTER
In the draft resolution, delete paragraph 11.6.
11.7broaden the scope of action of financial intelligence
units beyond strategies for tracing money laundering in order to
also help tackle tax evasion;
11.8strengthen the capacity of national tax authorities –
through expanded investigative powers, training and resources –
to enable more effective controls, prosecution and repatriation
of funds lost through tax evasion involving secrecy jurisdictions,
tax havens and offshore financial centres;
Tabled by Mr Bernard MARQUET, Ms Doris FIALA, Mr Urs SCHWALLER, Ms Meritxell MATEU, Mr Jean-Charles GARDETTO, Mr Joseph FALZON, Mr Fernand BODEN, Ms Anne BRASSEUR, Mr Pedro AGRAMUNT, Mr Josep Anton BARDINA PAU, Mr Arcadio DÍAZ TEJERA, Ms Milica MARKOVIĆ, Mr Fiorenzo STOLFI, Ms Chiora TAKTAKISHVILI, Mr Giorgi KANDELAKI, Mr Raphaël COMTE, Mr Maximilian REIMANN, Ms Elisabeth SCHNEIDER-SCHNEITER, Mr Alfred HEER, Ms Nicole MANZONE-SAQUET, Ms Lydia MUTSCH, Mr Norbert HAUPERT, Mr Mikheil MACHAVARIANI
In the draft resolution, paragraph 11.8, replace the words “secrecy jurisdictions, tax havens and offshore financial centres” with the following words:
“third States”.
11.9seek enhanced corporate tax accountability and financial
reporting by large domestic enterprises and multinational companies
in every country in which they operate;
Tabled by Mr Bernard MARQUET, Ms Doris FIALA, Mr Urs SCHWALLER, Ms Meritxell MATEU, Mr Jean-Charles GARDETTO, Mr Joseph FALZON, Mr Fernand BODEN, Ms Anne BRASSEUR, Mr Pedro AGRAMUNT, Mr Josep Anton BARDINA PAU, Mr Arcadio DÍAZ TEJERA, Ms Milica MARKOVIĆ, Mr Fiorenzo STOLFI, Ms Chiora TAKTAKISHVILI, Mr Giorgi KANDELAKI, Mr Raphaël COMTE, Mr Maximilian REIMANN, Ms Elisabeth SCHNEIDER-SCHNEITER, Mr Alfred HEER, Ms Nicole MANZONE-SAQUET, Ms Lydia MUTSCH, Mr Norbert HAUPERT, Mr Mikheil MACHAVARIANI
In the draft resolution, delete paragraph 11.9.
11.10review their policies on transfer pricing in order to
reduce opportunities for multinational businesses to manipulate
reporting of profits and taxes due;
11.11modify legal provisions that are used to bend their domestic
rules, notably on tax breaks, and to escape proper scrutiny or regulation
in tax matters, both national and international;
11.12join the Global Forum on Transparency and Exchange of
Information for Tax Purposes, if they have not yet done so, and
strengthen the process by shifting from peer review to expert review;
Tabled by Mr Bernard MARQUET, Ms Doris FIALA, Mr Urs SCHWALLER, Ms Meritxell MATEU, Mr Jean-Charles GARDETTO, Mr Joseph FALZON, Mr Fernand BODEN, Ms Anne BRASSEUR, Mr Pedro AGRAMUNT, Mr Josep Anton BARDINA PAU, Mr Arcadio DÍAZ TEJERA, Ms Milica MARKOVIĆ, Mr Fiorenzo STOLFI, Ms Chiora TAKTAKISHVILI, Mr Giorgi KANDELAKI, Mr Raphaël COMTE, Mr Maximilian REIMANN, Ms Elisabeth SCHNEIDER-SCHNEITER, Mr Alfred HEER, Ms Nicole MANZONE-SAQUET, Ms Lydia MUTSCH, Mr Norbert HAUPERT, Mr Mikheil MACHAVARIANI
In the draft resolution, paragraph 11.12, delete the words “and strengthen the process by shifting from peer review to expert review”.
11.13use the United Nations Committee of Experts on International
Cooperation in Tax Matters as the appropriate forum for both setting
standards and supporting developing countries in their efforts to counter
abusive tax practices.
Tabled by Mr Bernard MARQUET, Ms Doris FIALA, Mr Urs SCHWALLER, Ms Meritxell MATEU, Mr Jean-Charles GARDETTO, Mr Joseph FALZON, Mr Fernand BODEN, Ms Anne BRASSEUR, Mr Pedro AGRAMUNT, Mr Josep Anton BARDINA PAU, Mr Arcadio DÍAZ TEJERA, Ms Milica MARKOVIĆ, Mr Fiorenzo STOLFI, Ms Chiora TAKTAKISHVILI, Mr Giorgi KANDELAKI, Mr Raphaël COMTE, Mr Maximilian REIMANN, Ms Elisabeth SCHNEIDER-SCHNEITER, Mr Alfred HEER, Ms Nicole MANZONE-SAQUET, Ms Lydia MUTSCH, Mr Norbert HAUPERT, Mr Mikheil MACHAVARIANI
In the draft resolution, after paragraph 11.13, insert the following paragraph:
"fight effectively against social dumping."
12Finally, the Assembly invites the OECD and the European Commission
to work together towards optimising the prevailing tax models, helping
developing countries to counter abusive transfer pricing and maximising
tax receipts in countries where multinationals carry out a substantial
part of their activities.
Tabled by Mr Bernard MARQUET, Ms Doris FIALA, Mr Urs SCHWALLER, Ms Meritxell MATEU, Mr Jean-Charles GARDETTO, Mr Joseph FALZON, Mr Fernand BODEN, Ms Anne BRASSEUR, Mr Pedro AGRAMUNT, Mr Josep Anton BARDINA PAU, Mr Arcadio DÍAZ TEJERA, Ms Milica MARKOVIĆ, Mr Fiorenzo STOLFI, Ms Chiora TAKTAKISHVILI, Mr Giorgi KANDELAKI, Mr Raphaël COMTE, Mr Maximilian REIMANN, Ms Elisabeth SCHNEIDER-SCHNEITER, Mr Alfred HEER, Ms Nicole MANZONE-SAQUET, Ms Lydia MUTSCH, Mr Norbert HAUPERT, Mr Mikheil MACHAVARIANI
In the draft resolution, paragraph 12, replace the words "maximising tax receipts in countries where multinationals carry out a substantial part of their activities" with the following words:
"guaranteeing the right repartition of multinationals’ tax receipts according their activities in different countries."
