LuxLeaks tax source should not be charged

Margrethe Vestager has made clear that the commission is treating the LuxLeaks papers as ‘market information’ and is reviewing these tax rulings to decide whether or not they should be made the subject of further illegal state-aid cases.’ Photograph: Emmanuel Dunand/Getty

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 Integrity

Jack A. Blum Tax Justice Network USA

José Bové French MEP (Green)

Franziska Brantner German MP (Green)

Richard Brooks Author

Prof A J Brown Griffith University

Terri Butler Australian MP (Labour)

John Christensen Tax Justice Network UK

Allison Christians McGill University

Frank Clemente Americans for Tax Fairness

Alex Cobham Centre for Global Development

Rosa 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 Australia

Bas Eickhout Dutch MEP (Green)

Prof Peter Eigen Transparency International

Sven Giegold German MEP (Green)

Andrew Giles Australian MP (Labour)

Jesse Griffiths Eurodad

Gavin Hayman Global Witness

Nathaniel Heller Global Integrity

John Hilary War on Want

Martin Hojsik ActionAid International

Kelvin Hopkins UK MP (Labour)

Tim Hughes Involve

Yannick Jadot French MEP (Green)

Cathy James Public Concern at Work

Lord (Joel) Joffe UK member of upper house (Labour)

Eva Joly French MEP (Green)

Ged Kearney Australian Council of Trade Unions (ACTU)

Paul Kenny GMB union

Dr Sheila Killian University of Limerick

Philippe Lamberts Belgian MEP (Green)

Archie Law ActionAid Australia

Mauricio Lazala Business & Human Rights Resource Centre

Daniel Lebegue Transparency International

Eric LeCompte Jubilee USA

Laetitia Liebert Sherpa

Caroline Lucas UK MP (Green)

Benoît Majerus University of Luxembourg

Adrienne Margolis Lawyers for Better Business

Sorley McCaughey Christian Aid Ireland

Len McCluskey Unite the union

Porter McConnell Coallition for Financial Transparency

John McDonnell UK MP (Labour)

Katherine McFate Center for Effective Government

Michael Meacher UK MP (Labour)

Austin Mitchell UK MP (Labour)

Richard Murphy Tax Research UK

Melissa Parke Australian MP (Labour)

Cedric Perrin French senator (UMP)

Prof Sol Picciotto Lancaster University

Bernard Pinaud CCFD-Terre Solidaire

Prof Thomas Pogge Yale University

Marc Purcell Australian Council for International Development

David Quentin Tax Justice Network UK

Michèle Rivasi French MEP (Green)

Friederike Roder ONE

Prof Tulio Rosembuj University of Barcelona

Molly Scott Cato UK MEP (Green)

Mark Serwotka PCS union

Nick Shaxon Author

Prof Prem Sikka University of Essex

Nick Smith UK MP (Labour)

Jim Stewart Trinity College, Dublin

Lord (Ben) Stoneham UK member of the upper house (Lib Dem)

Dr Andy Storey University College Dublin

Ernest Urtasun Spanish MEP (Green)

Tom van der Lee Oxfam Novib

Denis Vienot Justice et Paiz

Duncan Wigan Copenhagen Business School

Rebecca Wilkins FACT Coalition

Dan Wootton Uniting Church in Australia

Dr Mark Zirnsak Tax Justice Network Australia