FISC Committee discusses tax transparency
FISC Committee hosted a hearing with expert speakers on 9 September on Tax Transparency. The hearing focused on tax reporting standards, best practices and legislation.
Numerous MEPs asked the expert panelists about the recently approved EU legislation on public country by country reporting (CBCR) and how the rules should be followed up. Many also quizzed about a minimum global corporate tax rate. Some MEPs agreed that a more simple tax system was needed because this would automatically make it more difficult to dodge taxes. Others argued that tax compliance would best be served by establishing low rates.
Eelco van der Enden, Chair of Accountancy Europe’s tax working party but speaking in his capacity of Global Reporting Initiative’s (GRI) board member, argued that tax reporting is increasingly becoming a corporate social responsibility (CSR) and sustainability topic for companies and investors. Read more
Ursula Von Der Leyen presents the Commission’s yearly priorities to the Parliament
European Commission President Ursula Von Der Leyen delivered on 15 September to the European Parliament the annual State of the Union address. In her address, the Commission President touched upon a wide array of issues and EC’s priorities, including on taxation.
She re-iterated EC’s commitment to fight against tax fraud and avoidance, and to revamp Europe’s tax system. In an accompanying statement of intent, EC also confirmed its intention to propose Directives to implement a prospective OECD agreement on Pillars 1 (re-allocation of taxing rights) and 2 (minimum taxation). Read more
European Parliament publishes draft report on impact of national tax policies
The draft report was prepared by MEP Markus Ferber (EPP/Germany). It underlines challenges to the EU Single Market posed by various national tax policies and recommends several improvements. It also includes several recommendations for SMEs, laments SMEs’ higher tax compliance costs and warns against possible distortive effects from preferential tax regimes for smaller companies.
A vote on the report is scheduled in the ECON Committee on 6 December, followed by a final Plenary vote on 17 January 2022. The report and its recommendations are legally non-binding. Read more
European Parliament adopts resolution on exchange of tax information, Commissioner says DAC 8 in 2022
European Parliament Plenary adopted on 16 September its report on the implementation of EU’s tax information requirements. The report was prepared by MEP Sven Giegold (Greens-EFA/Germany), and adopted with 561 votes in favour, 12 votes against and 116 abstentions.
Mr. Giegold’s report concludes that EU member states must increase their efforts on tax cooperation and implementation of the Directive on administrative cooperation (DAC). It laments, specifically, that there is still a lot of information about income and assets that is not systematically shared across borders, and the information that is shared is underused and of mixed quality. Mr. Giegold also criticises the Council and EC for not granting the Parliament access to the information needed to fully assess the effective implementation of the Directive.
In a 15 September hearing before the vote, Commissioner Gentiloni told MEPs that EC’s proposal on DAC 8 (crypto-assets and e-money, common EU sanctions) is scheduled for Q1 2022 (instead of initially planned Q4 2021).