The European Commission has agreed to relaunch work on establishing a common consolidated corporate tax base (CCCTB) for EU member states, as part of the tax transparency action plan to be launched later this month.
The European Commission has agreed to relaunch work on establishing a common consolidated corporate tax base (CCCTB) for EU member states, as part of the tax transparency action plan to be launched later this month.
The EC’s College of Commissioners held an orientation debate on 27 May on measures to make corporate taxation fairer, more growth-friendly and transparent, agreeing that a new EU approach is needed to address tax abuse, ensure sustainable revenues and create a better business environment. The orientation debate will feed into an action plan, which will include a strategy to revive the CCCTB, implementing the international OECD measures against tax avoidance and strengthen tax transparency generally. The Commission will release its transparency communication on 17 June to open discussions on both short and long term measures.
Pierre Moscovici, commissioner for economic and financial affairs, taxation and customs, said: ‘Our current approach to corporate taxation no longer fits today’s reality. We are using outdated tools and unilateral measures to respond to the challenges of a digitalised, globalised economy … Big, small and medium sized companies should be able to benefit from the internal market on an equal footing.’
However, the UK’s financial secretary to the Treasury, David Gauke, dismissed the proposals at the ‘Britain, Europe and tax competition’ conference. In his speech, Gauke said: ‘We have heard worrying noises from across the Channel – with talk of a minimum tax rate applied on profits. So let me be crystal clear. Direct taxation is a matter for EU member states. Any EU-wide measure would require unanimity across all EU countries. Any form of EU-wide minimum tax rate would undermine our sovereignty and we therefore would block it. Put simply, it ain’t happening. [Britain’s] corporation tax regime will remain competitive – the most competitive of any major economy.’
The European Commission has agreed to relaunch work on establishing a common consolidated corporate tax base (CCCTB) for EU member states, as part of the tax transparency action plan to be launched later this month.
The European Commission has agreed to relaunch work on establishing a common consolidated corporate tax base (CCCTB) for EU member states, as part of the tax transparency action plan to be launched later this month.
The EC’s College of Commissioners held an orientation debate on 27 May on measures to make corporate taxation fairer, more growth-friendly and transparent, agreeing that a new EU approach is needed to address tax abuse, ensure sustainable revenues and create a better business environment. The orientation debate will feed into an action plan, which will include a strategy to revive the CCCTB, implementing the international OECD measures against tax avoidance and strengthen tax transparency generally. The Commission will release its transparency communication on 17 June to open discussions on both short and long term measures.
Pierre Moscovici, commissioner for economic and financial affairs, taxation and customs, said: ‘Our current approach to corporate taxation no longer fits today’s reality. We are using outdated tools and unilateral measures to respond to the challenges of a digitalised, globalised economy … Big, small and medium sized companies should be able to benefit from the internal market on an equal footing.’
However, the UK’s financial secretary to the Treasury, David Gauke, dismissed the proposals at the ‘Britain, Europe and tax competition’ conference. In his speech, Gauke said: ‘We have heard worrying noises from across the Channel – with talk of a minimum tax rate applied on profits. So let me be crystal clear. Direct taxation is a matter for EU member states. Any EU-wide measure would require unanimity across all EU countries. Any form of EU-wide minimum tax rate would undermine our sovereignty and we therefore would block it. Put simply, it ain’t happening. [Britain’s] corporation tax regime will remain competitive – the most competitive of any major economy.’
