Luxembourg's finance minister told CNBC Monday that a system which allows banks to evade tax was unacceptable, particularly given that some were bailed out by taxpayers following the financial crisis.
Referring to the recent HSBC tax-dodging scandal – in which the bank is accused of helping wealthy Swiss clients evade millions of pounds worth of tax – Finance Minister Pierre Gramegna said the tax system was being reviewed in order to create a "a common, level playing field."
"It is not my call who should run HSBC, but when you've gone through an economic crisis and you have put burdens on tax payers in your country, it is not acceptable that companies are paying less or no taxes at all because the system allows it," he said at the Global Financial Markets Forum in Abu Dhabi.
"The international system is being reviewed so that we have fairer taxation everywhere…If we have that, we'll have a framework that everyone can accept."
The minister's comments come just days after McDonald's was accused by labour unions and a charity of avoiding around 1 billion euros ($1.1 billion) in tax between 2009 and 2013 by routing revenues through a Luxembourg unit. The groups called on the European Commission to investigate.
Gramegna said the country's government had "abandoned bank secrecy" and was committed to a system of "tax transparency."