Our tax systems need to be reformed to address new forms of trading, new sources of income, and new services.

As citizens, we enjoy the way digitalisation has made our life simpler but we need to keep a critical eye on the price we end up paying for this simplicity. Some digital companies pay zero or close to zero taxes. That means that traditional companies and taxpayers have to chip in to cover the difference, which leads to unequal societies and big income inequalities. We live in ever more connected societies and evolving economies, but the tax systems we use are outdated. Fairer tax systems will ensure a fairer distribution of income. 

To address tax evasion and tax avoidance we need to strengthen transparency and efficiency. We must close loopholes in the internal market that lead to forum shopping, social dumping, the creation of letterbox companies, bogus self-employment and the undermining of social and labour standards. Countries must automatically exchange tax-related information and companies and trusts must be open about who runs them. We must also tax profits where they are generated.