Strasbourg, 20/12/2005 (Agence Europe) - On 13 December, the European Parliament adopted the report by Pier Luigi Bersani (PES, Italy) supporting the idea of a common consolidated tax base for companies within the EU and a pilot project for this, under the rules of the State of residence for SMEs (consultation procedure). Noting that European companies active on the internal market are hindered by tax obstacles, problems of double taxation and high conformity costs when they are active in another Member State, the report "reserves a positive welcome" for the proposals of the Commission on creating a common and consolidated base at European level for larger businesses. Bringing in this kind of tax base "in no way prejudices the fundamental prerogatives of the Member States in taxation matters", particularly their right to set national levels of corporate tax, the MEPs note. The Parliament is therefore insisting on two "central and complementary" points: the creation of the common tax base according to European rules, setting up a consolidation method together with a system for dividing up the tax base between the Member States in question. It also hopes to see a gradual approach: at first, it will be optional to bring in the common tax base and then, further to an assessment, it may be made obligatory. The president of the committee on economic and monetary affairs, Pervenche Berès, who is pleased with the results, declared that the Parliament had voted "in favour of fairer, more transparent taxation for European companies". At the hearing of 5 October, which was held by the same committee and was attended by the Commissioner for Taxation, Laszlo Kovács, the idea of a common and consolidated corporate tax base was supported by the MEPs, the European Commission, Unice (employers' Association) and the Confédération Fiscale Européenne (see EUROPE 9045).
The Parliament also approved the pilot project for taxation under the rules of the State of residence for SMEs. This regime means that the taxable profits of the parent company, and that for all its establishments and subsidiaries in other Member States taking part in the project, can be calculated by applying the tax rules in force in its State of residence. This system is set to have a positive impact on the competitiveness of businesses at European and international level, says the Parliament, pointing out that "supporting SMEs is a number-one priority" of the revised Lisbon strategy on of the framework programme for innovation and competitiveness (2007-2013).