Multinational Tax Evation: Waiting for Godot: tackling multinationals’ tax avoidance – by Francesco Saraceno and Tommaso Faccio

The Netherlands’ insistence that everyone ‘go Dutch’ on mushrooming coronavirus deficits in the European Union has (given its complicity) revived the debate on tax havens within the EU. In an ideal world, action on joint debt issuance should go hand in hand with tax harmonisation and brakes on fiscal dumping.

But, given the current standstill in Europe, it is more likely that national solutions to avoid tax-base erosion will be sought, at least in the near future. Enforcing transparency and leveraging on company reputations could be enacted more effectively than the bans and regulations currently considered.

Note Almere-Digest:  The Netherlands Government of  Mark Rutte is one of the major EU culprits in facilitating these Multi- National Corporations (Mainly US companies) to dodge paying their local country taxes, by registering them as "special status" Dutch corporations.

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Waiting for Godot: tackling multinationals’ tax avoidance – Francesco Saraceno and Tommaso Faccio

Netherlands willing to contribute €1 billion to EU coronavirus fund no strings attached

The Dutch government is willing to contribute up to 1 billion euros to a yet-to-be-established European fund aimed at dealing with the coronavirus, Minister Wopke Hoekstra of Finance said. Countries hit hard by Covid-19 and that are not in good financial health can turn to the fund to finance medical aid. "I am thinking roughly of a few hundred million to 1 billion euros," Hoekstra said to NU.nl on Wednesday.

The Finance Minister stressed that this is not a loan, but a gift, and the Netherlands' "substantial contribution to public health in Europe". Countries who call on this fund must clearly need help, Hoekstra said. Figuring out exactly how the control and release of the funds will work, and the conditions attached, is the next step, he said.

Unlike the still contested European Stability Mechanism (ESM), contribution to this fund is not mandatory for EU Member States. The member states are free to decide if and how much they want to contribute. According to Hoekstra, there is "broad enthusiasm" among his European colleagues for this fund.

Hoekstra stressed that the Netherlands is and will remain vehemently against so-called coronabonds, where the funds raised from selling such bond instruments would be used to help all member states overcome economic hurdles during the ongoing health crisis. The money could then be invested in supporting any EU member state, while repayment obligations would be the responsibility of the entire EU. Italy and Spain, both very hard hit by the coronavirus, insist on such bonds, the Netherlands and other countries including Germany, France and Belgium are against it.

The Dutch resistance to coronabonds resulted in fierce criticism from Italy. Especially after Hoekstra said that countries should first pull out all the stops to recover from the economic downturn themselves.

This statement prompted indignation, given that the Netherlands has far less public debt than Italy and therefore has much more financial room.

Read more: Netherlands willing to contribute €1 billion to EU coronavirus fund | NL Times