In a few hours' time, MEPs will divide on a motion that was supposed to be about deterring aggressive tax avoidance, but is really about tax harmonisation. The British Government's reasonable proposals for better exchange of information on what multi-nationals are paying – proposals that were supposed to be global rather than European in their scope – have been overtaken by various attempts to create a consolidated EU corporate tax base.
The harmonisation of business taxes, especially indirect taxes, is nothing new: it goes back to the 1970s. But Eurocrats have been shaken by the crisis of monetary union, and have returned with new urgency to the agenda. Among the ideas being kicked around are emissions levies, a tax on emails, airport duties and, of course, the financial transactions tax. Naturally, the EU would rather tax businesses than individuals – though, of course, a business no more pays the corporation tax than your TV set pays the television licence. All taxes are, one way of the other, taxes on individuals.
See what our 'influence' in Europe means in reality. Had we simply pursued the aim of global information swapping through the G8 and G20, we might have got somewhere. But, because we are in the EU, the idea has now become hopelessly entangled with the European Commission's desire for an independent revenue stream.
Hands up anyone who thinks that taxes will be harmonised downward. It's no wonder that – despite the protestations of eurocrats masquerading as 'businessmen' – British industrialists and financiers are increasingly looking beyond the failing EU.
