Sweden slammed for keeping EU tax loophole open

Sweden came under fire on the 7 May 2014 for blocking a political agreement among EU finance ministers that would allow closing a loophole costing European taxpayers millions of euros.

Campaigners called for a swift resolution of the deadlock, which stopped the expected approval of a compromise brokered by the Greek Presidency of the European Union at ministerial meeting on the 6 May 2014.

The deal would have split the revised Parent-Subsidiary Directive in two, allowing member states to slam shut a loophole on hybrid loan arrangements without agreeing to a hotly debated general anti-tax abuse rule. All EU tax law requires unanimous support from member states to be passed, forcing the split.

ESO: Background information: Fighting Tax Avoidance: Commissioner Šemeta welcomes Parliament vote on Parent-Subsidiary Directive http://www.europeansources.info/record/statement-fighting-tax-avoidance-commissioner-semeta-welcomes-parliament-vote-on-parent-subsidiary-directive/

ESO: Background information: Speaking points by Commissioner Šemeta at the ECOFIN press conference http://www.europeansources.info/record/speech-speaking-points-by-commissioner-semeta-at-the-ecofin-press-conference/

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