The EU`s five leading economies called yesterday, April 14, for a crackdown on tax havens, urging the G20 powers to end the secrecy of shell companies that enables tax evasion and money laundering, according to EurActiv.
In the strongest reaction yet to the leaked ”Panama Papers,” the finance ministers of Britain, France, Germany, Italy and Spain also proposed a blacklist of havens like Panama if they do not share corporate registry data, according to a report.
”The recent extensive leaks from Panama show the critical importance of the fight against tax evasion, aggressive tax planning and money laundering,” the five EU ministers said in a statement.
The proposal was made as the Spring Meetings of the World Bank and International Monetary Fund kicked off, with fighting tax evasion one issue being discussed to help countries strengthen finances and boost growth, according to the report.
World Bank President Jim Yong Kim said the illicit financial activities enabled by tax havens undermined the fight against poverty.
In a letter to the G20 leading economies, meeting simultaneously in Washington, the five EU finance ministers proposed establishing transnational registries that identify the beneficial owners of companies, trusts, foundations and other entities that had been able to hide from tax administrators and law enforcement.
That would extend the steps already taken under the 2014 ”Common Reporting Standard” agreement crafted for signatories to begin sharing information about assets and accounts of each others` nationals, EurActiv writes.
Corrupt officials and criminals still can exploit cracks and loopholes to hide illicit financial activities despite that pact, the ministers said.
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