EU Member States Reach Fair Taxation Agreement
30 June, 2016
An agreement regarding the member states general approaches in relation to tax avoidance has been reached. The most common corporate tax evasion moves were assimilated and scrutinised to halt global harsh tax planning.
Why a Fair Taxation Agreement?
A fair taxation policy emphasises the importance of hindering people from bypassing taxation by filtering their choice of country accordingly. Gaps found within company taxation process are often exploited to lessen their bills. Consequently, the EU will now be implementing rules regulating the exchange of information among EU member states and creating a process whereby VAT scams should be effectively avoided.
While some of the measures have been changed due to tax issues in some member states, the Commission remains convinced that fast agreement on this Directive was still imperative if quick action needs to be taken. Since the Parliament has already issued its opinion, the new rules will soon be formally adopted by the Council.
Tackling the EU Fair Taxation Reform
The first proposal by the EU commission dates back to January. These new policies were immediately agreed to, particularly in conjunction with the Panama Papers issue. Soon, the Parliament will be officially putting the rules into working order.
Other modifications were made to the proposal amidst the agreement negotiations. Amendments included the aim of this proposal and its very own reform. During 2016, the Commission will perpetually push forward a campaign for its corporate tax reform, including the re-launch of the Common Consolidated Corporate Tax Base (CCCTB).
Furthermore, EU countries have also expressed their interest in compiling a common list of country tax legal systems that do not adhere to the international tax good governance standards.
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