The debate comes as tax authorities, firms and multinational corporations wait for the release of the final OECD Base Erosion and Profit Shifting (BEPS) final recommendations next month.

‘The current system of corporate tax rules is unfit for purpose and unjust. Some companies are losing out, whereas others win by hiding behind a variety of national rules,’ Juncker told MEPs at a joint meeting of the committees for tax rulings and for economic and monetary affairs.

‘We need a better insight into how multinational companies behave and how they make use of the differences between countries. Then we should create some order,’ he added.

Juncker batted off questions about the recent Luxleaks documents exposing global companies’ tax rulings agreed with the tax authorities when he was finance minister of Luxembourg.