LuxLeaks tax source should not be charged

http://www.theguardian.com/world/2014/dec/23/luxleaks-tax-source-should-not-be-charged

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We deplore the decision by Luxembourg to bring criminal charges against someone they believe to be the whistleblower responsible for passing to the media confidential rulings awarded by the Luxembourg tax authorities (Report, 20 December). We believe these disclosures were manifestly in the public interest, helping to expose the industrial scale on which Luxembourg has sanctioned aggressive tax-avoidance schemes, draining huge sums from public coffers beyond its borders.

The so-called LuxLeaks papers have already forced senior Luxembourg politicians, past and present, to admit there is an urgent need to reform the way multinationals are taxed. The revelations have also transformed the international tax debate, prompting the finance ministers of France, Germany and Italy to write to the European commission calling for urgent action. In their words: “It is obvious that a turning point has been reached in the discussion on unfair tax competition ... Since certain tax practices of countries and taxpayers have become public recently, the limits of permissible tax competition between member states have shifted. This development is irreversible.”

We believe this development is in large part thanks to the brave, public-spirited actions of an individual who ensured the contents of confidential tax rulings granted in Luxembourg became public. In contrast to his actions, Luxembourg has shown itself reluctant – up to this week – to disclose, even to the European commission, the criteria by which it offered businesses confidential tax rulings. Officials at the commission are tasked with ensuring such rulings do not constitute illegal state aid, and are already investigating whether Luxembourg rulings separately granted to subsidiaries of Amazon and Fiat violate state-aid laws.

Until last Thursday, Luxembourg had been firmly resisting what it told the European court of justice were speculative and disproportionate requests for information on its tax rulings from the commission. But now it has abruptly changed course and is complying with all requests. We believe this change is the result of the LuxLeaks scandal. Meanwhile, Margrethe Vestager, commissioner responsible for competition issues, has made clear that the commission is treating the LuxLeaks papers as “market information” and is actively reviewing these tax rulings to decide whether or not they should be made the subject of further illegal state-aid cases. While we understand and agree the rule of law must be observed, we note that Luxembourg prosecutors are required to have in mind whether or not the public interest is served by pursuing a criminal prosecution. We believe there is no public interest in prosecuting an individual suspected of bringing the LuxLeaks papers to the attention of the world.Raymond Baker Global Financial IntegrityJack A. Blum Tax Justice Network USAJosé Bové French MEP (Green)Franziska Brantner German MP (Green)Richard Brooks Author Prof A J Brown Griffith UniversityTerri Butler Australian MP (Labour)John Christensen Tax Justice Network UKAllison Christians McGill UniversityFrank Clemente Americans for Tax FairnessAlex Cobham Centre for Global DevelopmentRosa L. DeLauro US Congresswoman (Democrat)Karima Delli French MEP (Green)Anneliese Dodds UK MEP (Labour) Lloyd Doggett US Congressman (Democrat)Rev Prof Andrew Dutney Uniting Church in AustraliaBas Eickhout Dutch MEP (Green)Prof Peter Eigen Transparency InternationalSven Giegold German MEP (Green)Andrew Giles Australian MP (Labour)Jesse Griffiths EurodadGavin Hayman Global WitnessNathaniel Heller Global IntegrityJohn Hilary War on WantMartin Hojsik ActionAid InternationalKelvin Hopkins UK MP (Labour) Tim Hughes InvolveYannick Jadot French MEP (Green)Cathy James Public Concern at WorkLord (Joel) Joffe UK member of upper house (Labour)Eva Joly French MEP (Green)Ged Kearney Australian Council of Trade Unions (ACTU)Paul Kenny GMB unionDr Sheila Killian University of LimerickPhilippe Lamberts Belgian MEP (Green)Archie Law ActionAid AustraliaMauricio Lazala Business & Human Rights Resource CentreDaniel Lebegue Transparency International Eric LeCompte Jubilee USA Laetitia Liebert SherpaCaroline Lucas UK MP (Green) Benoît Majerus University of LuxembourgAdrienne Margolis Lawyers for Better BusinessSorley McCaughey Christian Aid IrelandLen McCluskey Unite the unionPorter McConnell Coallition for Financial TransparencyJohn McDonnell UK MP (Labour) Katherine McFate Center for Effective GovernmentMichael Meacher UK MP (Labour) Austin Mitchell UK MP (Labour)Richard Murphy Tax Research UKMelissa Parke Australian MP (Labour)Cedric Perrin French senator (UMP)Prof Sol Picciotto Lancaster UniversityBernard Pinaud CCFD-Terre SolidaireProf Thomas Pogge Yale UniversityMarc Purcell Australian Council for International DevelopmentDavid Quentin Tax Justice Network UKMichèle Rivasi French MEP (Green)Friederike Roder ONEProf Tulio Rosembuj University of BarcelonaMolly Scott Cato UK MEP (Green)Mark Serwotka PCS unionNick Shaxon Author Prof Prem Sikka University of EssexNick Smith UK MP (Labour)Jim Stewart Trinity College, DublinLord (Ben) Stoneham UK member of the upper house (Lib Dem)Dr Andy Storey University College DublinErnest Urtasun Spanish MEP (Green)Tom van der Lee Oxfam NovibDenis Vienot Justice et PaizDuncan Wigan Copenhagen Business SchoolRebecca Wilkins FACT CoalitionDan Wootton Uniting Church in AustraliaDr Mark Zirnsak Tax Justice Network Australia