Auditors Criticize Loopholes In EU’s €100 Billion Corporate Tax Fight

The European Union's battle against €100 billion in annual corporate tax avoidance is hindered by enforcement gaps and weak penalties, according to a report by the European Court of Auditors (ECA), Euronews reported.

Brussels recently scored a victory when EU judges ruled Apple must repay €13 billion in back taxes after Ireland’s tax arrangements with the tech giant were deemed unlawful state aid. I Photo: Apple

Brussels recently scored a victory when EU judges ruled Apple must repay €13 billion in back taxes after Ireland’s tax arrangements with the tech giant were deemed unlawful state aid.

However, the EU’s tax havens blacklist and other measures have been undermined by inconsistent sanctions and a reliance on member states for enforcement.

“Harmful tax regimes and corporate tax avoidance pose major challenges to ensuring taxes are paid where profits are made,” said Ildikó Gáll-Pelcz, the ECA member overseeing the report.

She urged a “united front” to close legal loopholes and implement clear guidelines, noting that corporate profit-shifting jeopardizes around one-fifth of the EU's corporate tax revenue.

The report highlights the need for stronger collaboration and enforcement mechanisms within the bloc to counteract aggressive tax planning effectively.