Tax Justice Network: Luxembourg, Austria continue to block Europe transparency

The sun also sets. Sunset in Naples Florida. Photo ET.

Tax Justice Network: Luxembourg, Austria continue to block Europe transparency

"European tax havens could face sanctions including blacklisting when the European Commission issues clampdown measures later this year, Taxation Commissioner Algirdas Šemeta has told EurActiv in an interview."

There we are again. Luxembourg blacklisted by whom at the European Commission? Fact is, that pressure will not go away for Luxembourg and Austria.

The Luxembourg Finance Minister Luc Frieden argues that Luxembourg is not a tax haven, that it has numerous OECD - type of double taxation agreements, and actually collects taxes from foreign entities. He may win the legal argument, but lose the Public Relations and fairness argument. Not sure if he doesn't understand the nuances, or if it is skillful political posturing.

There is a line of action though, as it is also unthinkable for Luxembourg to give up on its financial center. Just get it to work beyond the suspicion lines such as IMF inspections, FATF reviews and of course European Commission bickering.

Maybe Tax Justice Network has some guidelines for reform and on how to clean up the problem and become the white knight instead of the blacklisted. Though don't go for Mr Hollande's Opus on Taxes.