Tax Transparency Package
ECON-VI/004
Tax Transparency Package
Highlighting that fiscal transparency issues are important for the competitiveness and attractiveness of regions and for equitable and fair conditions in the competition between LRAs on business locations and for fiscal redistribution between the central and decentralized levels.
raising the level of requirements of the Commission's proposal by requiring from multinationals a country by country reporting, clarifying the role of local authorities and devolved administrations in implementing fiscal transparency obligations.
Contributing to a more significant investment of the CoR into topics related to tax coordination which will take more and more importance in European economic governance.
raising the level of requirements of the Commission's proposal by requiring from multinationals a country by country reporting, clarifying the role of local authorities and devolved administrations in implementing fiscal transparency obligations.
Contributing to a more significant investment of the CoR into topics related to tax coordination which will take more and more importance in European economic governance.
• The EP resolution on the directive on automatic exchange of information in the field of taxation (rapporteur: Ferber ) was adopted on 27 October and reflects a number of issues raised in the CoR opinion. For example, amendment 9 of the opinion argues that LRAs should not only have to provide information if requested to do so, but that they should also be entitled to request information. This was taken up in amendment 50 of the EP resolution. The EP furthermore adopted an amendment (no. 48) which takes aboard amendment 8 of the CoR opinion which requests that the European Commission provide assistance to national administrative subdivisions dealing with taxation.
• The Council, however, in its political agreement on the file, did not consider the abovementioned proposals put forward by the CoR or the EP. As the legal base of the proposal only provides the consultation and not the consent of the EP it appears unlikely that the proposals of the CoR will be part of the final legislative text.
• The opinion also covers a European Commission communication on tax transparency to fight tax evasion and tax avoidance.One of the two co-rapporteur in the EP on this topic, Ms Dodds , responded to the CoR follow-up activities stating the opinion raised useful points.
• The Council, however, in its political agreement on the file, did not consider the abovementioned proposals put forward by the CoR or the EP. As the legal base of the proposal only provides the consultation and not the consent of the EP it appears unlikely that the proposals of the CoR will be part of the final legislative text.
• The opinion also covers a European Commission communication on tax transparency to fight tax evasion and tax avoidance.One of the two co-rapporteur in the EP on this topic, Ms Dodds , responded to the CoR follow-up activities stating the opinion raised useful points.
THE EUROPEAN COMMITTEE OF THE REGIONS
- welcomes the Commission's proposal for a tax transparency package as it marks a significant milestone in the European Union's response to tax evasion and avoidance. This proposal is all the more important as tax evasion and avoidance represent forgone tax receipts of an estimated one trillion euros annually for the EU and as tax revenue represents some 90% of total public revenues;
- emphasises that the transparency requirements provided for in the proposal for a Directive apply not just to Member States' central tax authorities but also to territorial or administrative subdivisions, including local authorities. It therefore seems reasonable that these bodies should also be allowed to issue requests for information. However, given the limited resources at the disposal of territorial or administrative subdivisions the Commission should be able where necessary to provide them with assistance and training;
- proposes that large multinational companies should be subject to special transparency requirements entailing disclosure of advance cross-border rulings and advance cross-border arrangements country-by-country. This is important as large multinational companies are those most likely to benefit from distortions in competition. Furthermore, the disclosure of advance cross-border rulings would enable customers to hold these companies accountable for the ethical standards of their tax behaviour;
- asks the Commission to examine all sanctions to be established in instances of refusal or omission of information exchange.
- welcomes the Commission's proposal for a tax transparency package as it marks a significant milestone in the European Union's response to tax evasion and avoidance. This proposal is all the more important as tax evasion and avoidance represent forgone tax receipts of an estimated one trillion euros annually for the EU and as tax revenue represents some 90% of total public revenues;
- emphasises that the transparency requirements provided for in the proposal for a Directive apply not just to Member States' central tax authorities but also to territorial or administrative subdivisions, including local authorities. It therefore seems reasonable that these bodies should also be allowed to issue requests for information. However, given the limited resources at the disposal of territorial or administrative subdivisions the Commission should be able where necessary to provide them with assistance and training;
- proposes that large multinational companies should be subject to special transparency requirements entailing disclosure of advance cross-border rulings and advance cross-border arrangements country-by-country. This is important as large multinational companies are those most likely to benefit from distortions in competition. Furthermore, the disclosure of advance cross-border rulings would enable customers to hold these companies accountable for the ethical standards of their tax behaviour;
- asks the Commission to examine all sanctions to be established in instances of refusal or omission of information exchange.
