Commissioners back EU-wide tax proposals
The European Commission stepped up its tax ambitions today – triggering claims of a threat to a cornerstone of British sovereignty.
A new report on an EU-wide business tax system with a common tax base was approved by a majority of Commissioners meeting in Brussels.
The aim is to give companies operating in Europe’s single market the same rules for calculating their corporate tax base, instead of dealing with 27 different national systems.
But EU single market Commissioner Charlie McCreevy raised objections today.
The Commission insisted it was acting purely in business interests to cut costs and boost efficiency, and establish a more favourable tax environment for the benefit of business and consumers.
A statement said: “The CCCTB would constitute a comprehensive solution to tackle all company tax obstacles arising from when companies carry out cross-border activities within the single market.
“It would enable companies to follow the same rules for calculating the tax base for all their EU-wide activities, rather than in accordance with up to 27 existing systems, thereby improving efficiency and reducing compliance costs.”
Today’s progress report on the three-year-old idea will now be discussed with EU governments, and the Commission intends to unveil proposals for legislation next year.
