EU plans tax transparency clampdown

The European Commission today presented a package of tax transparency measures as part of its ambitious agenda to tackle corporate tax avoidance and harmful tax competition in the EU. This marks the start of a new era of transparency. Today’s package includes a legislative proposal introducing the automatic exchange of information between Member States on their tax rulings and a communication outlining a number of other initiatives to advance the tax transparency agenda in the EU.

Everyone has to pay their fair share of tax. This applies to multinationals as to everyone else. With today’s proposal on the automatic exchange of information, tax authorities would be able to better identify loopholes or duplication of tax between Member States. In the coming months, we will put forward concrete actions to tackle such loopholes or overlaps. We are committed to following up on our promises with real, credible and fair action,” said Vice-President Valdis Dombrovskis, responsible for the Euro and Social Dialogue.

Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs, said: “Tolerance has reached rock-bottom for companies that avoid paying their fair share of taxes, and for the regimes that enable them to do this. We have to rebuild the link between where companies really make their profits and where they are taxed. To do this, Member States need to open up and work together. That is what today’s Tax Transparency Package aims to achieve.” (European Commission)

The Tax Transparency Package proposes that European governments automatically exchange details of tax rulings to try to tackle “aggressive tax planning”. (BBC)