The European Parliament’s special committee on tax rulings discussed tax measures with representatives from Guernsey, Jersey, Liechtenstein, Monaco and Andorra on 14 and 15 March. Representatives of all these states claimed they comply with the highest international standards and actively support the OECD’s plans. Guernsey and Jersey both apply a 0% corporate tax rates, with 10% for financial services, based on non-discrimination between resident and non-resident owned companies and confirmed that no tax rulings have been issued. Both states stressed that they meet ‘every international standard of tax transparency and information exchange’.
None of these jurisdictions currently discloses information on the ownership of companies, although Guernsey companies are required to have resident agents and the island is aiming to have a secure registry in place by 2017. Jersey has a company register, but the information is not publicly available. See www.bit.ly/1TLAH2m.
Representatives of Apple, Google, IKEA and McDonald’s appeared on 15 March.
Google’s representative expressed serious reservations about the Commission’s plans for a common consolidated corporate tax base, which would increase costs by requiring an establishment in every EU country, something he described as ‘contrary to the principle of the internal market’.
Apple’s representative told the committee its worldwide taxes and effective tax rate, but was not prepared to disclose its EU and Irish tax figures, on grounds of confidentiality. ‘When country-by-country reporting will become mandatory’ he said, ‘we will of course follow’.
McDonalds’ representative welcomed the BEPS project, which should create a ‘clearer, simpler and more consistent international tax regime’ but was concerned about ‘unilateral approaches’ if the directives are not ‘harmonised in a holistic manner’. McDonalds is not in favour of public country-by-country reporting, which the company feels could harm competition, adding that ‘information should be kept confidential between tax authorities’.
IKEA’s representative promised to provide a written assessment of a report by the parliament’s Greens/EFA Group accusing IKEA of avoiding tax by routing royalties through the Netherlands and Liechtenstein, although he questioned the accuracy of the report. He said the BEPS measures should be aligned both inside and outside the EU and would welcome a mechanism for rapid dispute settlement. See www.bit.ly/1pnMkiU.
Fiat Chrysler and Starbucks declined to appear, as did the Cayman Islands and the Isle of Man.
The European Parliament’s special committee on tax rulings discussed tax measures with representatives from Guernsey, Jersey, Liechtenstein, Monaco and Andorra on 14 and 15 March. Representatives of all these states claimed they comply with the highest international standards and actively support the OECD’s plans. Guernsey and Jersey both apply a 0% corporate tax rates, with 10% for financial services, based on non-discrimination between resident and non-resident owned companies and confirmed that no tax rulings have been issued. Both states stressed that they meet ‘every international standard of tax transparency and information exchange’.
None of these jurisdictions currently discloses information on the ownership of companies, although Guernsey companies are required to have resident agents and the island is aiming to have a secure registry in place by 2017. Jersey has a company register, but the information is not publicly available. See www.bit.ly/1TLAH2m.
Representatives of Apple, Google, IKEA and McDonald’s appeared on 15 March.
Google’s representative expressed serious reservations about the Commission’s plans for a common consolidated corporate tax base, which would increase costs by requiring an establishment in every EU country, something he described as ‘contrary to the principle of the internal market’.
Apple’s representative told the committee its worldwide taxes and effective tax rate, but was not prepared to disclose its EU and Irish tax figures, on grounds of confidentiality. ‘When country-by-country reporting will become mandatory’ he said, ‘we will of course follow’.
McDonalds’ representative welcomed the BEPS project, which should create a ‘clearer, simpler and more consistent international tax regime’ but was concerned about ‘unilateral approaches’ if the directives are not ‘harmonised in a holistic manner’. McDonalds is not in favour of public country-by-country reporting, which the company feels could harm competition, adding that ‘information should be kept confidential between tax authorities’.
IKEA’s representative promised to provide a written assessment of a report by the parliament’s Greens/EFA Group accusing IKEA of avoiding tax by routing royalties through the Netherlands and Liechtenstein, although he questioned the accuracy of the report. He said the BEPS measures should be aligned both inside and outside the EU and would welcome a mechanism for rapid dispute settlement. See www.bit.ly/1pnMkiU.
Fiat Chrysler and Starbucks declined to appear, as did the Cayman Islands and the Isle of Man.
