Corporate tax rules

Economic affairs MEPs ask Commission to table corporate tax measures

Published

11 years ago

December 1, 2015

The European Commission is asked to table measures to improve corporate tax transparency, co-ordination and EU-wide policy convergence in legislative recommendations voted by the Economic and Monetary Affairs Committee on Tuesday (1 December). These recommendations build on the work of Parliament’s Special Committee on Tax Rulings, set up in the wake of the 'Luxleaks' revelations, the recommendations of which were approved at the 26 November plenary session.

The report by rapporteurs, Anneliese Dodds (S&D, UK) and Luděk Niedermayer (EPP, CR), was approved by 45 votes to three, with 10 abstentions. The Commission will have to respond to every legal recommendation, even if it does not submit a legislative proposal.

Recommendations

The Economic and Monetary Affairs Committee asks the Commission, inter alia, to:

Table a proposal for country-by-country reporting on profit, tax and subsidies by June 2016;
table a proposal for introducing a 'Fair Tax Payer' label;
introduce a Common Tax Base (CCTB) as a first step, which later on should be consolidated as well (CCCTB);
table a proposal for a common European Tax Identification Number;
table a proposal for legal protection of whistle-blowers;
improve cross-border taxation dispute resolution mechanisms;
table a proposal for a new mechanism whereby member states should inform each other if they intend to introduce a new allowance, relief, exception, incentive, etc. that may affect the tax base of others;
estimate the corporate tax gap (corporate taxes owed minus what has been paid),
strengthen the mandate and improve transparency of the Council Code of Conduct Working Group on Business Taxation;
provide guidelines regarding 'patent boxes' so as to ensure they are not harmful;
come up with common definitions for "permanent establishment" and "economic substance" so as to ensure that profits are taxed where value is generated;
come up with an EU definition of "tax haven" and counter-measures for those who use them, and;
improve the transfer pricing framework in the EU.

What's next?

The committee resolution will be put to a vote by Parliament as a whole on 16 December. If it is approved, the Commission will have three months to respond to the recommendations, either with a legislative proposal or with an explanation for not doing so.

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