Brussels, 11/10/2011 (Agence Europe) - Eliminating tax obstacles in the single market and combating double taxation, tax evasion and tax fraud, while renewing the European VAT system, developing green taxation to stimulate sustainable growth and promote jobs, taxing financial transactions to curb speculation and inconsiderate risk-taking, while ensuring the financial sector makes an equitable contribution to public finance - such are the aims of the 2011 tax package and the main tax policy projects set out by Algirdas Semeta, EU Commissioner for Taxation and Customs Union, Audit and Anti-Fraud. He was speaking on 11 October in Brussels during FEE Tax Day 2011, organised by the Fédération des Experts Comptables européens (FEE). These measures, the commissioner said, must allow European tax policy to be renewed and underpin the EUROPE 2020 strategy.
The Common Consolidated Corporate Tax Base (CCCTB) must thus eliminate tax obstacles on cross-border activities within the single market, and reduce costs linked to the disparity of tax systems by establishing common rules with a one stop shop system (see also EUROPE 10312 and 10338). In parallel, the commissioner announced a specific strategy for combating double taxation in the field of direct taxation, by improving existing instruments (directive on withholding taxes on interest and royalties between associated companies and the Arbitration Convention on transfer pricing), and by creating new instruments (binding resolution mechanism to eliminate double taxation in the case of a dispute between member states). The fight against fraud and tax evasion require improvement and, although the EU has achieved good results with regards transparency, information sharing and fair tax competition, efforts must be made to counter aggressive tax planning, the commissioner said, planning to make concrete proposals in close cooperation with other international partners such as OECD, G20 and the UN.
On the subject of indirect taxation, Semeta underlined the need to simplify the VAT system and make it as uniform as possible. The complexity and the disparity of rules between member states puts a brake on using the benefits of the internal market to the best advantage, and the commissioner announced proposals on the major directions for a future VAT system by the end of the year, as well as a series of concrete measures which, in the immediate future, will aim to improve communication between companies, national tax authorities and the Commission. Algirdas Semeta then tackled green taxation, speaking of the proposal for revision of the directive on energy taxation which, he said, follows a tempered and balanced approach. The introduction of a CO2 tax must help the EU to reach its goals with regard to climate change and energy policies, but must also partly ease the tax burden on work. Finally, tackling the proposed tax on financial transactions, he said that the initiative must ensure the financial sector makes a fair and substantial contribution to public revenue. It will also set incentives to reduce overly risky transactions and activities, whose benefit for the economy is questionable. (FG/transl.jl)