MEPs: Make EU Corporate Tax System ‘Fairer’
Action is needed to harmonize corporate tax practices across Europe, according to the European Parliament’s Special Committee on Tax Rulings.
The committee said this was the key sentiment voiced during a meeting with finance ministers from Luxembourg, Italy, France, Spain, and Germany on September 22. According to the committee, while tax competition cannot be avoided, the current system has reached its limits and led to unwanted side effects.
ECOFIN President and Luxembourg Finance Minister Pierre Gramegna said that fighting tax fraud and evasion is the Presidency’s top priority. He added that Luxembourg is committed to delivering an agreement among European Union (EU) countries on the automatic exchange of tax rulings, introducing a common corporate tax base, and working towards an EU-wide minimum effective corporate tax rate. It also aims to complete work on an agreement on the interest and royalties directive by the end of September.
The MEPs present called on the Council to address Parliament’s wish for country-by-country reporting of corporate profits and taxes in countries where business is done. They also pressed the Council to establish a common definition of “aggressive” tax planning.
