FISC discusses impact of technology on taxation
The FISC Committee held on 9 November a public hearing on “The impact of new technologies on taxation: crypto and blockchain”. It was a discussion with experts and institutional representatives about the fiscal challenges stemming from crypto assets, the impact of technologies such as blockchain on taxation and the use of technologies as an instrument to support tax fraud and evasion.
The panellists included Michelle Harding from the OECD, Andreas Thiemann from EC’s Joint Research Centre (JRC), Alberto García Valera from EY, and Robert Müller from Flick Gocke Schaumburg. Read more and watch the recording
European Parliament endorses public CBCR deal, finalizing the process
European Parliament Plenary discussed on 10 November the Directive on public country-by-country reporting (CBCR) by multinationals. Most political Groups showed significant support, particularly given the five years in which the Directive was inactive in the Council.
Several MEPs outlined how there have been a series of scandals related to tax evasion and avoidance. For the Commission and the Rapporteur Evelyn Regner (S&D/Austria), disclosure and transparency are the first steps in fighting tax shifting and evasion, describing this as a pioneering historical moment, with the EU being the first region in the world to adopt such legislation.
At its 11 November vote, the Parliament confirmed the agreement reached with the Council. The Council had already endorsed the agreement, meaning that public CBCR will now become EU law. Read more
FISC discusses amendments to draft report on fair and simpler taxation
At its 30 November hearing, FISC Committee discussed the amendments to the draft own-initiative report on “Fair and simpler taxation supporting the recovery strategy”, prepared by MEP Ludek Niedermayer (EPP/Czech Republic). It is European Parliament’s response to the July 2020 Commission’s Action Plan and its 25 initiatives in the area of VAT, business and individual taxation.
The draft report contains concrete recommendations for legislative proposals structured around the following three main topics: simplification and costs of compliance reduction for taxpayers, more certainty for taxpayers, and reduction of tax gap and compliance costs.
A Committee vote is currently scheduled for 24 January 2022, followed by a Plenary vote on 14 February.
FISC discusses amendments to draft report on impact of national tax reforms
At another 30 November hearing, FISC Committee discussed amendments to the draft own-initiative report on “The impact of national tax reforms on the EU economy”. The draft report, which was prepared by MEP Markus Ferber (EPP/Germany), contains concrete recommendations for legislative proposals structured around the following main topics: Debt-Equity bias, Effective marginal tax rate competition, Tax incentives for research and Development and An EU taxation scoreboard. The report is due to be voted on in Committee on 6 December, followed by a Plenary vote on 17 January 2022.
FISC discusses draft report on a pan-EU withholding tax system
A third FISC discussion on November 30 focused on amendments submitted to a draft report on a European withholding tax framework, prepared by the MEP Pedro Marques (S&D/Portugal). MEPs are hoping to influence EC’s work on its proposal expected for late 2022.
Mr. Marques underlined that there is broad consensus in the Committee about using technologies such as blockchain to link national databases and crosscheck information in real time. Moreover, there are amendments calling for the development of a registry for entities entitled to Treaty relief.
Both are recommendations made, notably, by Accountancy Europe’s Paul Gisby at a FISC hearing last month.
ECON is currently expected to vote on the draft report on the last week of January 2022, followed by a Plenary vote possibly in February or March.