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EU draft tax report

The EU’s special committee on tax rulings has published its draft report on “harmful corporate tax regimes and practices at European and international level, with the aim of fighting tax evasion and aggressive tax planning, notably by increasing transparency and cooperation between governments and between national parliaments”.

The priorities outlined in the report include action on transfer pricing; a renewed call for a common corporate consolidated tax base; and legislation on patent box regimes to ensure that intellectual property tax reliefs are closely linked with genuine economic activity.

Other recommendations include:

  • Keeping the proposed anti-tax avoidance directive as one single directive;
  • Encouraging member states to endorse an agreed blacklist of uncooperative tax havens by the end of 2016;
  • Introducing an EU-wide withholding tax, to ensure that profits are taxed at least once before leaving the EU, with a refund system to avoid double taxation;
  • Promoting research and development through subsidies, rather than patent boxes;
  • Introducing a ‘minimum effective taxation’ clause into the interest and royalties directive;
  • An EU code of conduct for all advisory services, including tough sanctions for professionals and companies involved in aggressive tax planning and evasion;
  • Creating a new EU ‘tax policy coherence and coordination centre’;
  • Guaranteeing EU-wide legal protection for whistleblowers; and
  • Reforming the European council’s code of conduct group on business taxation to increase its transparency and accountability.

Might be only of academic interest though in the event of a Brexit.



Date: 2nd June, 2016
Author: Cathy Corns


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