Tag Archives: Ecofin

EU new rules on fair taxation

 

The European Commission welcomes EU Member States’ formal green light for new rules to better resolve tax disputes.

“We proposed this new system to improve legal certainty and EU competitiveness by creating a binding obligation on Member States’ authorities to resolve tax disputes in a timely manner. This is an important step to allow EU citizens and businesses alike to have fair tax treatment. I commend the quick action of Member States and the European Parliament to support this upgrade of the current rules.” Said Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs.

The decision taken by EU finance ministers at the ECOFIN Council meeting in Luxembourg today will ensure that businesses and citizens can resolve disputes related to the interpretation of tax treaties more swiftly and effectively. It will also cover issues related to double taxation – a major obstacle for businesses, creating uncertainty, unnecessary costs and cash-flow problems. Double taxation refers to cases where two or more countries claim the right to tax the same income or profits of a company or person. It can occur, for example, due to a mismatch in national rules or different interpretations of a bilateral tax treaty with regards transfer pricing arrangements.  The improvements to the current rules agreed by EU finance ministers in Luxembourg will give taxpayers much more certainty when it comes to seeking resolution to their interpretation of tax treaties or double taxation problems.

New EU plan to raise taxes for internet firms

 

The proposal of France, Italy, Germany and Spain on web tax has already received the interest of ten other countries. French Finance Minister Bruno Le Maire said, entering the Economic and Finance Council (Ecofin), which will discuss the issue.

“Ten States have appreciated our proposal and have decided to sign our paper,” said Le Maire, explaining that the EU must “defend its interests” and hopes that “a final Commission proposal by mid 2018 “.

“We should be very careful,” Denmark’s finance minister Kristian Jensen said, warning of the risks of pushing innovative companies away from Europe.

“This is a very good initiative of the four countries, the digital economy makes tax very difficult, nobody likes taxes, but we need it, so we need to understand how to put our hands on it”, said the Dutch minister and president of the Eurogroup (the European Coordination Center which brings together the Finance Ministers of the 19 States that have adopted the euro) Jeroen Dijsselbloem, referring to the web tax.