Casa calls for taxation to remain at EU member state level

Taxation should remain the prerogative of European member states, Nationalist MEP David Casa said.

"I will continue to oppose efforts at harmonisation at EU level of sensitive areas of taxation simply because member states must continue to have the flexibility to decide what works best within their own territories", Casa said during the first constitutive meeting of a special committee tasked with investigating tax practices.

The committee was set up following allegations in November 2014 that Luxembourg had aided large companies in avoiding payments of substantial sums of money through taxes in other countries. However, the committee will not focus its enquires solely on Luxembourg but on all member states.

"Understanding what constitutes tax evasion as opposed to tax avoidance is not always clear cut,” Casa said. “The debate in this Committee could be beneficial in developing a better understanding of what constitutes acceptable tax practices and this should be welcomed. However in many areas of taxation member states must retain the flexibility and discretion to legislate for themselves.”

The Maltese MEP pointed out that the Financial Transaction Tax and the Common Consolidated Corporate Tax Base, two schemes aimed at the convergence of taxation systems of all 28 member states, were unsuccessful.