The Dutch treasury is missing out on €22bn a year due to tax evasion, according to researchers at the University of London on behalf of MEPs from the social and democratic alliance within the European parliament.

In total, EU countries miss out on €823bm because of tax avoidance, the S&D research shows. The total amount is about five times the annual EU budget.

European social democratic parties presented their five-point plan to close the ‘tax gap’ on Wednesday and are demanding a corporate tax rate of 18% and an end to ‘shadowy tax advantages’. They are also backing European Commission efforts to end the national veto on European tax decisions.

Research by European green parties published last week show that companies in the Netherlands realistically pay some 10% tax on their profits, when the actual corporate taxation rate is 25%.