Keep In View: EU – Anti Tax Avoidance Package
On the 28th January 2016, the European Commission issued an Anti Tax Avoidance Package which proposes new rules which would align the tax laws throughout the EU Member States and contribute towards the effective tackling of aggressive tax planning.
It is anticipated that collectively, these measures will hamper aggressive tax planning, boost transparency between Member States and ensure fairer competition for all businesses in the Single Market. The package is based around the three core pillars of the Commission’s agenda for fairer taxation:
Ensuring effective taxation in the EU;
Increasing tax transparency;
Securing a level playing field.
Key features of the new proposals include:
legally-binding measures to block the most common methods used by companies to avoid paying tax;
a recommendation to Member States on how to prevent tax treaty abuse;
a proposal for Member States to share tax-related information on multinationals operating in the EU;
actions to promote tax good governance internationally;
a new EU process for listing third countries that refuse to play fair.
The package is also accompanied by a document outlining the political, economic and international context of the Anti Tax Avoidance Package as well as a new study on Aggressive Tax Planning which analysis the main channels used by companies to avoid taxes.
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