On Friday 9 March, two days before a meeting of the European finance ministers at which an agreement on the transparency of tax advisers was hoped for, the question of taxation rates remained front and centre.
Under this proposal, tax advisers (broadly defined as accountants, lawyers, etc.) would be required to send the tax authorities the aggressive tax planning schemes they prepare for their clients (also defined fairly broadly).
Although the member states seem to agree on most of the points, there is still no consensus on the definition of a planning scheme, as one of the markers that concern deductible cross-border payments, is still under discussion. In particular, it provided that schemes would have to be sent to the tax authorities if the beneficiary of the payment was established in a jurisdiction with a rate of zero or almost zero, or if the rate was lower than half of the average EU rate.
According to our information, the United Kingdom, Ireland, Cyprus, Malta, Hungary, Romania, Estonia, Croatia, Latvia and Lithuania were opposed to the reference to a zero rate, while France, Germany, Spain and Italy were insistent upon it. The reference to a rate of less than a certain percentage of the average EU rate, however, was deleted from the most recent draft compromise dated 9 March.
This marker also stated that a scheme would have to be exchanged if the payment in question benefited from a total or partial tax exemption at the place of establishment of the beneficiary. Italy preferred the transparency obligation to be limited to full exemptions, but France argued the opposite point.
Finally, the schemes would have to be exchanged if the payment came under a beneficial regime. The Netherlands, Belgium, Malta, Italy and Luxembourg are reportedly calling for this criterion to be limited to preferential regimes that are harmful only.
On the strength of a first table round between ministers, the Bulgarian Presidency of the Council of the EU will have to consider, this Tuesday, whether an agreement is possible. Estonia and the UK have tabled parliamentary reservations. (Original version in French by Élodie Lamer)