FISC hearing on tax incentives and exemptions
The public hearing took place on 11 July, and was titled “The role of tax incentives and exemptions in the framework of the reform of corporate taxation and in the promotion of European economies’ competitiveness”. The purpose of the hearing was to gather insights and opinions from experts on the effectiveness and economic relevance of tax incentives for investment. This included, in particular, tax-free zones in the EU, as well as discussing incentives’ effect on the competitiveness of Member States and the Single Market as a whole. A background brief was also prepared by the Parliament’s services for the hearing.
ECON Committee hosts Czech finance minister
The hearing with the Czech finance minister took place on 13 July and focused on the Czech Council Presidency’s priorities in financial affairs and taxation. Most notably, he told the Committee on Economic and Monetary Affairs (ECON) MEPs that his Presidency will aim for an agreement on the EC’s Pillar 2 proposal in October. The finance minister was also reluctant about using enhanced cooperation for the proposal, and said there are more pressing priorities to deal with than the unanimity on tax files question. Read more
FISC publishes study on regulation of tax advice
The much anticipated study was finally published on 2 August. It was commissioned by the Subcommittee on Tax Matters (FISC) to inform their work on the topic.
The study provides an overview of tax intermediaries’ regulatory landscape and presents a comparative analysis of five countries – Germany, Ireland, the Netherlands, Italy and the UK. It shows that many professions provide tax advisory services, including tax advisers, lawyers, accountants, bankers and wealth managers, and that many disparities exist between countries.
The study also underlines that tax advice will always involve professional judgment that cannot be replaced by additional reporting obligations or technology. Read more
US considering fixing FATCA issue, PETI Committee delegation hears
Some US lawmakers are reportedly considering changing its Foreign Account Tax Compliance Act (FATCA) rules that affects in particular so-called ‘accidental Americans’. This is what a European Parliament PETI (petitions) Committee delegation to the US was told in July. However, whether the US government will change the rules to reflect the political desire of the lawmakers remains uncertain. Read more