Brussels, 23/03/2016 (Agence Europe) - The legislative proposal on the common consolidated corporate tax base ('CCCTB'), which is anticipated for November, will contain a “new definition of a permanent establishment that is capable of dealing with the business models of digital economy and is resilient against attempts to artificially circumvent its application”. This is a promise made by the European Commission in its response to the recommendations of the European Parliament regarding the fight against tax optimisation, dated 16 March 2016 and of which EUROPE has had sight.
The Commission had come under fire for having failed to include such a definition in its proposed anti-tax evasion directive, which was presented on 27 January of this year. It opted in favour of an instrument that was not binding on the member states, a recommendation to the states on how to modify their bilateral tax agreements to fight artificial avoidance of a taxable presence in the form of a permanent establishment.
In its responses, the Commission also states that its proposal will not include the 'corporate taxation code of conduct' group in the Community framework, as it takes the view that the states should first and foremost have the option to reform the group. Nor is it planning to propose the obligatory notification by the states of any new tax measure, as it feels that this should be dealt with in the framework of the 'code of conduct' group.
The Commission also explained that it will provide orientations on the application of the rules on State aid to corporate tax planning practices. “The Commission will publicly identify in individual decisions tax measures that are not compatible with the State aid rules”, it states.
In response to the request to include the activities of tax consultants in the framework, the Commission explains that the new regulation on the legal control of the accounts of entities of public interest will have an impact, for instance on tax advice to certain entities. The Commission does not intend to propose additional measures until the impact of the existing measures has been assessed.
On protection for whistleblowers, the Commission states that it is following developments in a number of areas, for instance to assess whether there may be a need for action at European level, where this might add value. It stresses that it supports the efforts of the states to improve this protection at national level and notes the provisions in this direction in the existing texts. (Original version in French by Elodie Lamer)