#LuxLeaks: PwC whistleblowers hope to overturn convictions

Former Price Waterhouse Coopers (PwC) employees Antoine Deltour and Raphaël Halet returned to court today (12 December) to appeal their convictions  for theft and violating Luxembourg's secrecy laws. The LuxLeaks revelations led to several investigations by the European Commission into illegal state aid and the creation of a special committee on tax rulings in the European Parliament, writes Catherine Feore.

In 2014, the so-called LuxLeaks revealed a large number of secret tax rulings between the Grand Duchy of Luxembourg and large multi-national companies, deals facilitated by PwC. The rulings were designed to reduce the tax liability of companies. Following the leaks, the European Commission launched several investigations into possible illegal state aid. The investigations are ongoing and have already resulted in an order for Luxembourg to recover tax from Starbucks and Fiat. Decisions on McDonalds and others are expected in the near future.

In a response to a question by EU Reporter on the role of whistleblowers in the DG Competition's investigations, Commissioner Vestager said that they were very much appreciated, but she added that she couldn’t comment on the national proceedings in Luxembourg.

The case raises important questions about the protection available to whistleblowers in the EU. Luxembourg is one of very few European countries with legislation to protect whistleblowers, but it was inadequate in this instance despite the clear public interest justification for publication.

Some MEPs have called on the European Commission to make a proposal at a European level, given that the leaks revealed a strong European interest; however, the Commission is hesitant to make a proposal since nations are very protective of interference in the area of criminal law.

Stelios Kouloglou MEP (Greek, GUE/NGL), who is a substitute on the Committee of Inquiry into Money Laundering, Tax Avoidance and Tax Evasion (PANA) at the European Parliament, said: “It’s a shame. These people are helping countries to fight corruption and to be better at collecting taxes. They should be rewarded instead of being sent to jail!”

Dutch MEP Dennis De Jong, who as co-president of the European Parliament’s Intergroup on Integrity, Transparency, Corruption and Organised Crime (ITCO), has sought to prioritise the status of whistleblower protection in its upcoming EU Anti-Corruption Report, said: “The Luxembourg trial shows that we need European legislation to effectively protect whistleblowers in member states.”

De Jong has written an own-initiative report on the protection of whistleblowers relating to the protection of the financial interests of the EU. De Jong’s report is due to be adopted in February 2017.

More than one hundred campaigners from 20 countries across Europe have descended on Luxembourg to offer their support during the trial.

Tove Ryding, tax justice co-ordinator at the European Network on Debt and Development (Eurodad), said: “The original sentences of Mr Deltour and Mr Halet were a total disgrace, and we want this injustice to stop. You shouldn’t have to go to court for exposing the fact that that multinational corporations are dodging taxes.

“These men deserve praise, not punishment. The information revealed in the LuxLeaks scandal should never have been secret in the first place, and has been praised by many political leaders.”

S&D MEP Virginie Rozière, who was present at the trial in Luxembourg and will take the lead on the European Parliament’s report on whistleblowers, said: “This trial shows why we need real protection for whistleblowers in Europe.”

The S&D Spokesperson for legal affairs, Evelyn Regner MEP, said that it was necessary to "go beyond nice words in support of whistleblowers" saying that clear legal protection should be put in place, "It cannot be right that they face trial, while those implicated in the scandals get off scot-free."

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