Euro Unions Slam Big Four Accountancy Firms for Dodging Trillions in Tax
European trade unionists have called for the split-up of the Big Four accountancy firms, PWC, Ernst & Young, Deloitte and KPMG, who they say are using their dominant position to help multi-national companies avoid trillions of Euros in tax.
The European Trade Union Confederation (ETUC) has called for the break-up of the Big Four accounting firms who, it says, are responsible for tax avoidance and evasion estimated to cost over $1 trillion a year in lost Government revenue in the EU alone.
ETUC made a united call for tax justice, and demanded new national and European actions to end to tax evasion and avoidance, tax havens and aggressive tax planning.
“While Governments cut spending, and ordinary people are being squeezed by rising costs and stagnant wages, some rich people and multi-nationals are not paying their fair share,” said Bernadette Ségol, General Secretary of ETUC.
“Trade unions demand tax justice. Every Euro not paid in tax is a Euro taken away from basic services and benefits. It is time for more fairness.”
Among the measures supported at a meeting of the European Trade Union Confederation executive committee, are calling for a European-wide tax investigation centre, EuroTax, to investigate cross-border tax dodging; investment in national tax administrations and investigative capacity as an urgent ‘structural reform’; and a ban on public contracts for exploiters of tax havens.
EU Failing on Tax Investigation
ETAC says multi-national companies should be required to publish full accounts in each country in which they operate.
“Tax evasion and avoidance are flourishing because of the lack of information on capital flows and ownership of assets internationally,” said Ségol. “National governments are focused more on tax competition than co-operation, more on cutting administration than on tax investigation.”
The European Commission has been pressing for a shake-up in the auditing and accountancy market.
In a 2011 report, it said the audit market faces a number of weaknesses including a lack of choice for audit clients resulting from high concentration levels (in essence an oligopoly) and a “systemic risk if one of ‘the Big Four’ (Deloitte, Ernst & Young, KPMG and PwC) collapses. In that case, there would be even more concentration at the top end of the audit market.”
