On Thursday 13 October, MEPs in the Subcommittee on Tax Matters (FISC) asked the Dutch Secretary of State for Finance, Marnix van Rij, about tax harmonisation at European level and the unanimity required in the EU Council when Member States take decisions on tax issues. Earlier, he presented the progress and initial results of national tax reforms.
With the directive on minimum taxation of companies still blocked in the EU Council, MEPs asked Mr van Rij what the government’s position was on the issue (see EUROPE 13029/17). Indeed, a number of countries wish to initiate enhanced cooperation if the Hungarian veto persists. They also asked about the Dutch position on the end of unanimity in the Council.
Mr van Rij did not fundamentally challenge the concept of unanimity. But “for us alternatives are open for discussion”, he said. “That means that also the option of qualified majority is open for discussion for the Dutch because we have to achieve results here”, he added, recalling that it was also important to see where the US stood.
Alfred Sant (S&D, Maltese) spoke of the importance of tax harmonisation. In Mr van Rij’s view, tax harmonisation based on a minimum tax would make life easier for both tax administrations and businesses.
“EU countries should not be basing their attractiveness on a tax race to the bottom that only harms everyone”, he said.
Asked by Lídia Pereira (EPP, Portuguese) about the ‘Unshell’ directive aimed at preventing the abuse of shell entities for tax purposes, Mr van Rij said the Netherlands supports the proposed EU legislation (see EUROPE 13039/23).
The Secretary of State explained that the Netherlands is already reaping some of the benefits of its efforts to move away from the image of a tax haven with which it is sometimes associated. “Flows of money to low-tax jurisdictions have fallen sharply, for example”, he said. He said these flows decreased from €38.5 billion to €6 billion in 2021. He stated the objective to dry up this flow, in particular by introducing the withholding tax on dividends on 1 January 2024.
In terms of tax advisers, the Secretary of State said that he had seen a change through the development of a code of conduct for the profession. “But it is positive to see that in 10 years the climate has really changed”, he said. (Original version in French by Anne Damiani)