In a presentation to a working party of the 27 EU member states, excluding the UK, in early February, the European Commission set out plans for a ‘level playing field’ in the EU’s future relationship with the UK after Brexit, which included a tax good governance clause.
The general approach of the presentation was that standards should not be ‘lowered’ as a result of the UK leaving the EU. The Commission suggested that possible UK tax measures to gain competitiveness and attract investment after withdrawal could pose a risk to the EU. In this context, the Commission proposed inclusion of:
a tax good governance clause;
binding requirements on exchange of information, anti-tax avoidance measures and public country-by country reporting for credit institutions and investment firms; and
a code of conduct on business taxation (mirroring the EU code).
The presentation also covered state aid, environmental issues and employment law. On state aid, The Commission does not consider WTO rules provide adequate protection for the future trading relationship and seeks substantive rules equivalent to current EU state aid rules.
In a presentation to a working party of the 27 EU member states, excluding the UK, in early February, the European Commission set out plans for a ‘level playing field’ in the EU’s future relationship with the UK after Brexit, which included a tax good governance clause.
The general approach of the presentation was that standards should not be ‘lowered’ as a result of the UK leaving the EU. The Commission suggested that possible UK tax measures to gain competitiveness and attract investment after withdrawal could pose a risk to the EU. In this context, the Commission proposed inclusion of:
a tax good governance clause;
binding requirements on exchange of information, anti-tax avoidance measures and public country-by country reporting for credit institutions and investment firms; and
a code of conduct on business taxation (mirroring the EU code).
The presentation also covered state aid, environmental issues and employment law. On state aid, The Commission does not consider WTO rules provide adequate protection for the future trading relationship and seeks substantive rules equivalent to current EU state aid rules.
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