The European Commission has Released its Anti-Tax Avoidance Package
The communiqué is available here. The EC explains:
“The package is based around the three core pillars of the Commission’s agenda for fairer taxation:
Ensuring effective taxation in the EU
The fundamental principle of corporate taxation is that companies should pay tax where they make their profits. The Package makes specific proposals to help Member States ensure that this happens. The Commission proposes an Anti Tax Avoidance Directive with legally-binding measures to tackle some of the most prevalent tax avoidance schemes. Its Recommendation on Tax Treaties advises Member States on the best ways to protect their tax treaties against abuse, in a way that is compatible with EU-law.
Increasing tax transparency
Transparency is crucial to identifying aggressive tax planning practices by large companies and to ensuring fair tax competition. Today’s Package seeks to boost transparency on the taxes that companies are paying, through a revision of the Administrative Cooperation Directive. Under the proposed rules, national authorities will exchange tax-related information on multinational companies’ activities, on a country-by-country basis. As such, all Member States will have crucial information to identify risks of tax avoidance and to better target their tax audits. The Commission is also currently looking at the separate issue of public country-by-country reporting, for which an impact assessment is currently underway in view of an initiative to be presented in early spring.
Securing a level playing field
Tax avoidance and harmful tax competition are global problems. Action to prevent them must extend beyond the EU’s borders. As Member States work to implement new global standards of tax transparency and fair tax competition, it is important that the EU’s international partners follow suit. Developing countries should also be included in the international tax good governance network, so that they can benefit from the global fight against tax avoidance too. Today’s Package contains a Communication on an External Strategy for Effective Taxation. Its aim is to strengthen cooperation with international partners in fighting tax avoidance, enhance EU measures to promote fair taxation globally based on international standards and create a common approach to external threats of tax avoidance. This will help to ensure a fair and level playing field for all businesses and countries.”
The Anti-Tax Avoidance package comprehensive documentation includes:
- Information on the Anti-Tax Avoidance package
- MEMO on the Anti-Tax Avoidance package
- Factsheet on the Anti-Tax Avoidance package
- Communication on the Anti-Tax Avoidance package
- Proposal on anti-tax avoidance measures
- Proposal on mandatory automatic exchange of information amongst tax administrations
- Communication on an External Strategy for Effective Taxation
- Study on Structures of Aggressive Tax Planning and Indicators
- Staff Working Document
- Recommendation on measures against tax-treaty abuse
- Action Plan for Fair and Efficient Corporate Taxation in the EU
Robert Robillard, Ph.D., CPA, CGA, MBA, M.Sc. Econ.
Senior Partner, DRTP Consulting Inc.
514-742-8086; robertrobillard “at” drtp.ca
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