Brussels, 04/12/2015 (Agence Europe) - On Tuesday 8 December, EU finance ministers will discuss how to implement the OECD's action plan on the erosion of tax bases and the transfer of profits (BEPS) within European legislation, as the European Commission prepares to unveil a draft anti-BEPS directive on 27 January. In this connection, they will discuss the current proposal for a common consolidated corporate tax basis (CCCTB), which the European Commission will withdraw in 2016.
Back in February 2015, the member states suggested that the CCCTB talks focus on the anti-BEPS aspects of the initial proposal (stable establishment, rules for controlled foreign companies, general anti-abuse rules, the switchover clause, restricting the deductibility of interest and potential rules on hybrid mortgages, exit taxes).
The Luxembourg Presidency of the Council of the EU explains in an assessment of the situation that it has opened talks on the possibility of extracting a number of measures from the current CCCTB proposal on the international aspects of BEPS. France, in particular, said that a distinction had to be made between tackling tax optimisation and tax harmonisation. The Presidency explains that work will continue on a number of issues, such as the scope (a directive applying to all companies operating in the EU or only to big companies or multinationals), and the impact of de minimis application and its consequences.
At the Ecofin Council, the minsters are expected to express their views on the best approach for transposing the BEPS recommendations in the EU (hard law or soft law).
Minimum effective taxation. In the technical talks on BEPS and the reworking of the Code of Conduct Group, several countries expressed reservations about continuing to work on the principle of minimum effective taxation.
Cyprus calls for a draft conclusions document on BEPS to state that the Ecofin encourages talks on the concept of effective taxation rather than 'recognises the need for further talks' on effective taxation. Malta and Ireland want the draft Ecofin conclusions document on the Code of Conduct Group to have paragraph 9 removed, which “invites” the working group on tax issues to “discuss a revision to the mandate with the objective that profits are subject, as appropriate, to an effective level of tax within the EU.” The anti-BEPS directive that the Commission is planning to publish in January may deal with the question of effective minimum taxation. (Original version in French by Elodie Lamer)