IHE, the organisation that represents Spain’s Inspectors of Inland Revenue, has said that EU level agreements regarding combating fiscal fraud are "not enough", and has called for a mechanism to isolate countries that do not automatically provide tax information.
The IHE has said that the "only measures" are to "financially close off all countries" that do not automatically facilitate information inside or outside the EU.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
According to the IHE, tax fraud against Spain is taking place with relative impunity, and it will not change by the agreements between the 27 EU governments regarding directives on savings, VAT fraud or tax planning.
On 22 May, EU leaders discuss fighting tax fraud by lifting bank secrecy in a meeting, where Austrian chancellor Werner Faymann agreed to exchange bank data by the year-end.
However, the IHE said it will be "worthless" to abolish banking secrecy if the title holders of these accounts are established in other fiscal paradises. "We would have the name of the account holder but not the real identity," said IHE.
"In the last meeting of the EU, no agreement was reached concerning fiscal paradises – without which the last agreement in battling fiscal fraud will not work," IHE added.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataAccording to the IHE eliminate banking secrecy amongst member states of the EU "once and for all", establishing a list of fiscal paradises, not giving legal recognition to entities that establish their domicile in a fiscal paradise, establishing a tax on all transfers to and from these fiscal paradises and forcing all financial companies with branches in fiscal paradises to supply information on account holders, will enabe checking tax fraud across the EU.
IHE also added that multinationals shoud give annual reports for each of the countries they operate in, and antifraud clauses in law should be established that enable all member countries to "distinguish between real economic transactions and artificial ones created to elude paying taxes".
