Brussels to push ahead with common tax rules

Companies would save €1bn per year in administrative costs if the European Union adopts a common approach to corporate taxation, EU Economic and Tax Commissioner Pierre Moscovici has claimed.

The former French finance minister has posted an article to his online blog calling for a mandatory EU common consolidated corporate tax base, a plan that has been stalled for years because of opposition from countries including Ireland.

Brussels wants to revive the tax plan by proposing a phased-in approach that would postpone the plan’s consolidation element, but move toward a single way to calculate taxable income.

Mr Moscovici’s draft proposes a mandatory consolidated tax base “to better prevent profit shifting” and said the commission would seek European Parliament support to convince reluctant nations.

Tax changes require unanimous approval from EU states.