Spain’s tax inspectors call for harsher measures

EU level agreements regarding measures to combat fiscal fraud are not enough, and there should be a mechanism to isolate countries that do not automatically provide tax information, according to IHE, the organisation that represents Spain’s Inspectors of Inland Revenue.

IHE said tax fraud against Spain is taking place with relative impunity, and it is not something that will be changed by the agreements between the 27 EU governments regarding directives on savings, VAT fraud or tax planning by multinationals.

“For the Inspectors of Inland Revenue the only measures possible are to financially close off all countries which do not automatically facilitate information inside or outside the EU,” the organisation said.

“In the last meeting of the EU held 21 May, no agreement was reached concerning fiscal paradises – without which the last agreement in battling fiscal fraud will not work.”

“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.”

IHE has listed its demands, which it said would help end tax fraud across the EU:

• Eliminate once and for all banking secrecy amongst member states of the European Union.

• Establish a list of fiscal paradises which would include a list of countries who do not share information.

• Do not give legal recognition to entities that establish their domicile in a fiscal paradise.

• Establish a tax on all transfers to and from these fiscal paradises.

• Force all financial companies with branches in fiscal paradises to supply information on account holders, or if they refuse, prohibit that they have branches open in the fiscal paradise.

• Agree that multinationals give annual reports for each of the countries they operate in, that way it would reduce false transfers of money to countries with cheaper taxes rates.

• Establish antifraud clauses in law – that way all member countries can distinguish between real economic transactions and artificial ones created to elude paying taxes.


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