The European Parliament decided to set up a special committee on financial crimes, tax evasion and tax avoidance , vested with the following powers:

to follow up on the progress by the Member States in ending tax practices which allow for tax avoidance and/or tax evasion that are harmful for the proper functioning of the single market, as referred to in its abovementioned resolutions of 25 November 2015 and 6 July 2016 and recommendation of 13 December 2017; to assess how EU VAT rules were circumvented in the framework of the Paradise Papers and to evaluate in a more general way the impact of VAT fraud and administrative cooperation rules in the Union; to analyse the exchange of information and coordination policies between the Member States and Eurofisc; to contribute to the ongoing debate on taxation of the digital economy; to assess national schemes providing tax privileges (such as citizenship programmes); to follow closely the ongoing work of, and contribution by, the Commission and Member States in international institutions , including the OECD, G20, UN and the Financial Action Task Force (FATF); to analyse and assess the third‑country dimension in tax avoidance practices, including the impact on developing countries; to assess the methodology, country screening and impact of the EU list of non-cooperative jurisdictions for tax purposes ( EU blacklist of tax havens ), the removal of countries from the list.

The committee shall make any recommendations it deems necessary in its area of competence, based on work carried out by the TAXE 1 and TAXE 2 special committees and the PANA inquiry committee. It shall take into account in its work the recent Paradise Papers revelations from 5 November 2017 and any relevant developments within the remit of the Committee that emerge during its term.

The special committee shall have 45 members and its term of office shall be 12 months .