European initiatives on eliminating tax havens and offshore financial transactions and the impact of these constructions on the Union’s own resources and budget

This study reviews the impact of tax havens, secrecy jurisdiction, and similar structures on the EU. It concludes that the availability of these structures constrains the EU budget and undermines the fiscal recovery of EU Member States. They distort markets by conferring advantages on large companies that engage in transfer pricing. The study recommends the development of objectively verifiable criteria to identify high risk jurisdictions, combined with mandatory country by country reporting by multinational companies operating in the EU.

The study includes case studies describing the situation in Greece, Spain, the Netherlands and the United Kingdom and one VAT fraud case study (Operation Euripus in the UK).