EU willing to stamp out multinational’s tax avoidance
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EU willing to stamp out multinational’s tax avoidance

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The European Commission is preparing a package of measures with the aim of preventing companies from using complex tax arrangements to avoid public corporation taxes. These include the demand of greater transparency in agreements between companies and member states to ensure a fairer competition for all businesses in the Single Market.

The Anti-Tax Avoidance Directive proposes six legally-binding anti-abuse measures, which all Member States should apply against common forms of aggressive tax planning. Transparency, public accountability and a most efficient regulation are the basis on which new measures are built. As Pierre Moscovici, Commissioner for Economic and Financial Affairs, “We are tacking a major step towards creating a level-playing field for all our businesses, for fair and effective taxation for all Europeans.”

These tax engineering practices are estimated to deprive the European Union of 70.000 million euros in fiscal revenue. Through confidential agreements with their host countries, the companies did not have any obligation to declare their profits and levels of taxation in every country in which they operate within the EU. Then largest companies as Facebook, Google or Amazon will be forced to publicly disclose their earnings and tax bills in Europe.

The two legislative proposals of the Package will be submitted to the European Parliament for consultation and to the Council for adoption. A proposal on "public tax transparency (country-by-country reporting)" is in the agenda of the EU Commission meeting on April 12. It Requires the agreement of all 28 governments.

 

For more information:

http://www.theguardian.com/world/2016/feb/07/eu-multinationals-tax-arrangements-us-google-amazon

http://europa.eu/rapid/press-release_IP-16-159_en.htm

http://ec.europa.eu/taxation_customs/taxation/company_tax/anti_tax_avoidance/index_en.htm

 

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