91997E3823

WRITTEN QUESTION E-3823/97 by Roberto Mezzaroma (UPE) to the Commission (28 November 1997)

Subject: Tax havens

Would the Commission list those areas or zones inside Europe referred to as tax havens?

Has the Commission created - or arranged for the establishment of -any tax havens, does it intend to do so in the near future, or will it be involved in the development of any such tax havens?

What is the role of the existing tax havens, and what should it be in future?

Answer given by Mr Monti on behalf of the Commission (2 February 1998)

'Tax haven' is not a concept defined in European law. In the absence of any definition it is difficult to identify existing tax havens, and consequently it is not possible to respond to questions regarding any role which the Commission may have played in their creation. Recently, however, the Commission launched an important initiative to promote coordination on tax matters within the Community. The Commission proposed a new and comprehensive approach towards taxation, both direct and indirect, within the Community. In its communication to the Council of 5 November 1997 ((COM(97) 564. )), the Commission set out a package to tackle harmful tax competition. Included in this package was a draft code of conduct aimed at defining and combating tax measures which are harmful. The Council and the representatives of the governments of the Member States, meeting within the Council, subsequently on the 1 December 1997 adopted a Resolution on a code of conduct for business taxation.

This code provides for a definition of tax measures which are potentially harmful and a review process to determine which of such measures are actually harmful. Such measures are to be rolled back, or, in the case of new measures, not to be introduced. The Resolution also states that the Council may decide to publish the reports produced by this review process.