The European Parliament’s Special Committee on Tax Rulings (TAXE 2) has voted to approve its latest report, which gives support for many of the proposals relating to increased transparency, effective taxation and a common consolidated corporate tax base (CCCTB) set out in the European Commission’s 2015 Action plan for fair and efficient corporate taxation’ (see www.bit.ly/1Ik1kRc). The Parliament as a whole is due to vote on the report in a plenary session on 4 July.
‘We’re setting clear demands for increased accountability, effective deterrents in the form of markedly increased sanctions for tax havens, banks, tax advisers and companies, and we’re calling for increased European and international cooperation on this hugely problematic issue’, said Jeppe Kofod, one of the authors of the report.
The report includes recommendations for:
· a ‘tax haven blacklist’ of non-cooperative jurisdictions, including a common definition of ‘uncooperative jurisdictions’ and an ‘escalation’ provision to allow for dialogue with a jurisdiction before deciding to blacklist it;
· sanctions against non-cooperative tax jurisdictions, including the option to review and even suspend free trade agreements and prohibit access to EU funds;
· sanctions for companies, banks, accountancy and law firms, and tax advisors proven to be involved in illegal, harmful or wrongful activities with those jurisdictions;
· sanctions against company managers and professionals involved in tax evasion;
· legislation against abuse of ‘patent box’ regimes, to make sure they are linked to genuine economic activity; and
· an EU public register of beneficial owners of companies.
The committee also calls for better guidelines on transfer pricing; protection for whistleblowers; a Commission proposal for a CCCTB (due in autumn 2016); an EU-wide withholding tax to be collected by member states on profits leaving the EU; a code of conduct for banks, tax advisors, and law and accounting firms; a new EU Tax Policy Coherence and Coordination Centre; and a global register of all assets held by individuals, companies and entities, such as trusts and foundations, to which tax authorities would have full access.
The European Parliament’s Special Committee on Tax Rulings (TAXE 2) has voted to approve its latest report, which gives support for many of the proposals relating to increased transparency, effective taxation and a common consolidated corporate tax base (CCCTB) set out in the European Commission’s 2015 Action plan for fair and efficient corporate taxation’ (see www.bit.ly/1Ik1kRc). The Parliament as a whole is due to vote on the report in a plenary session on 4 July.
‘We’re setting clear demands for increased accountability, effective deterrents in the form of markedly increased sanctions for tax havens, banks, tax advisers and companies, and we’re calling for increased European and international cooperation on this hugely problematic issue’, said Jeppe Kofod, one of the authors of the report.
The report includes recommendations for:
· a ‘tax haven blacklist’ of non-cooperative jurisdictions, including a common definition of ‘uncooperative jurisdictions’ and an ‘escalation’ provision to allow for dialogue with a jurisdiction before deciding to blacklist it;
· sanctions against non-cooperative tax jurisdictions, including the option to review and even suspend free trade agreements and prohibit access to EU funds;
· sanctions for companies, banks, accountancy and law firms, and tax advisors proven to be involved in illegal, harmful or wrongful activities with those jurisdictions;
· sanctions against company managers and professionals involved in tax evasion;
· legislation against abuse of ‘patent box’ regimes, to make sure they are linked to genuine economic activity; and
· an EU public register of beneficial owners of companies.
The committee also calls for better guidelines on transfer pricing; protection for whistleblowers; a Commission proposal for a CCCTB (due in autumn 2016); an EU-wide withholding tax to be collected by member states on profits leaving the EU; a code of conduct for banks, tax advisors, and law and accounting firms; a new EU Tax Policy Coherence and Coordination Centre; and a global register of all assets held by individuals, companies and entities, such as trusts and foundations, to which tax authorities would have full access.
