The European Commission’s corporate tax action plan, tabled on 7 June was debated with Commissioner Pierre Moscovici in plenary session on Wednesday evening. Rather than a plan, MEPs asked the Commission to accelerate its work on this pressing issue so as to deliver concrete legislative proposals. The Commission plan aims, inter alia, to introduce a common corporate tax base (CCTB). This would be its second corporate tax initiative after the March proposal for automatic exchange of tax rulings between tax authorities and the Commission. Such legislative proposals should include common definitions, with a view to harmonising the tax base across the EU, but not rates (which remain a member state competence), said many MEPs.The “Luxleaks” revelations of favourable tax rulings for multinationals prompted Parliament to set up a Special Committee on Tax Rulings to look at ways to bring about fairer and more transparent tax competition in the EU. Its recommendations are to be put to a plenary vote in November.
Next in Parliament
The plan will be debated again next week, at a joint hearing to be held by the Economic and Monetary Affairs and Tax Rulings committee (Thursday 2 July from 10:00) with Commission President Jean-Claude Juncker and tax Commissioner Pierre Moscovici.