EU Fiscal Policy
Two EU Action Plans on Taxation
2nd on Corporate Taxation to be presented on 2015-06-17
1st Action Plan (2015-03-18): “Tax Transparency Package” including Tax Rulings (Specialized Taxation Decisions-Regulations)
"A key element of this Tax Transparency Package is a proposal to introduce the automatic exchange of information between Member States on their tax rulings.
Assessing possible new transparency requirements for multinationals
Reviewing the Code of Conduct on Business Taxation
Repealing the Savings Tax Directive
Quantifying the scale of tax evasion and avoidance "
The next step: The next step will be an Action Plan on corporate taxation, which will be presented before the summer. It will include launch of a debate on the Common Consolidated Corporate Tax Base (CCCTB) and ideas for integrating new OECD/G20 BEPS actions at EU level."
From the OECD site: http://www.oecd.org/tax/beps-about.htm
About BEPS: Base erosion and profit shifting (BEPS) is a global problem which requires global solutions. BEPS refers to tax planning strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations where there is little or no economic activity, resulting in little or no overall corporate tax being paid. BEPS is of major significance for developing countries due to their heavy reliance on corporate income tax, particularly from multinational enterprises (MNEs).
#TaxTransparency - Combatting corporate tax avoidance- europa.eu/!dy73nHpic.twitter.com/gCTHD6kxlR
Combatting corporate tax avoidance: Commission presents Tax Transparency Package
"A key element of this Tax Transparency Package is a proposal to introduce the automatic exchange of information between Member States on their tax rulings."
A non EU company that has subsidiaries in EU Member States creates a management center company in a EU Member State X. It consists of one part-time employee that provides management services to the subsidiary companies. How is the EU Member State X to tax this company?
The company suggests to the tax authorities that the profits that the management centre makes are taxed 30% in the EU Member State and 70% in the non-EU country.
A decision, a regulation, a ruling is sought.
The Member State X gives that ruling.
Fighting tax evasion: EU and Switzerland sign historic #taxtransparency agreement http://europa.eu/!FP97Jg pic.twitter.com/aOM3OK82XT
EU Publication on Taxation