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The E.U. Tax Clampdown
The European Union has come up with a plan in order to curb deals between the multinational companies and government which are known as sweetheart tax accords. The proposed package that is tailored on tax transparency entails the involvement of European governments in exchanging details concerning tax rulings in order to try and trap “aggressive tax planning”. This plan was in order to have a members’ fiscal policy that will enable the system to a multinational companies and government equilibrium price. Each of the member country which number to 28, have to affirm all of their tax rulings in a consecutive regular period span of three months each. This idea rose due to the investigations that are ongoing in a number of E.U. member states ‘administrative tax systems. The countries whose tax deals are under scrutiny and are on spotlight include Ireland, Luxembourg, Netherlands and Belgium. The multinational companies that are involved in the scrutiny on the basis of sweetheart deals are Amazon, Pepsi, Ikea, Skype, Disney, Fiat and Microsoft.
Tax evasion has been an immoral business practice that was adopted by the member states in order to selfishly benefit through allowing multinational companies to avoid fair payment of taxes as per the commission requirements. The tolerance on tax evasion on the multinationals has resulted to lose of billions in Euros by the members states and is known to be the main cause of the historic LuxLeaks scandals. The available international business policies were neglected in to the advantage of the existing regime and member state without having in mind the negative effects imparted to the other member states. The secret deals revealed indicates that big companies with the inclusion of Ikea and Pepsi lowered their rates of taxes to the level of one percent in secret deals with authorities that are mandated to handle tax Luxembourg.
Improvement of tax policies especially those tailored to labor laws will have a greater impact on curbing the corporate tax evasion menace. In order for the EU to obtain the harmonization of member state taxes, there is need for tax transparency in order to regulate and monitor the taxation process of the states visa vie the multinational companies involved. The member states are mandated to hand over all the tax rulings that are of cross-border relations to the other member states. This should go beyond the current situation where information sharing is founded on the consideration of relevance by the original state. “Under European Union (EU) rules member states are not allowed to grant companies tax advantages that distort competition.” (BBC) The idea is also pegged on exempting rulings on domestic tax. The member states also have the authority to request for more information that is detailed in case of need without prohibitions. No member country is allowed to refuse to give out any information on the basis of public policy or commercial secrecy.
In the sample below, Tax rate on multinationals labeled series 1, 2 and 3 varied in different countries stated as category 1, 2, 3, and 4 hence the E.U. can reach equilibrium to curb tax evasion by getting the underlying microeconomics principles. The transparent taxation system has resulted to areas of contention between states and market economies. Moreover, the system of tax burden distribution has usually ignited social conflicts that are always intense. The understanding of the near ability to resist tax, it has emerged obvious that there are a few historical studies that focused on the examination of practice on tax-refusal by multinational firms. This represents the current driving force behind finance globalization. The development of tax legislation is highly influenced by business leaders and the existing sate regimes. Therefore, detailed policy on transparency will result on equal distribution of economic benefits and enhance the communal development through Mutual Corporation. It creates the distortion of competition owing to member state differences in relation to the new rates.
Transparency in tax issue requires communication that outlines a number of more initiatives that will advance the basic agenda. This includes the possible assessing of the new requirements for multinationals’ transparency through feasibility examination. The business taxation code of conduct should be renewed because it is one of the major tools in ensuring fair competition on corporate tax. This sets up a criteria which regulates if the tax regime is harmful hence the need to abolish tax measures that are harmful. There is need to quantify the tax evasion scale in order to determine how reliable in terms of estimates in the levels on which tax avoidance can reach. This should target on policy measures from reliable statistics. The tax directives on savings should be repealed because it has currently been overtaken by EU legislations that are more ambitious hence requires a wide automatic information scope.

Works Cited
BBC. BBC New Business. 18 March 2015. 19 March 2015 <http:/www.BBC.Com/news/business - 31944211>.