Juncker Criticizes ‘Unjust’ EU Rules on Corporate Taxation 

tax-logo2

Jean Claude Juncker has told Members of the European Parliament (MEPs) that the current rules on corporate taxation are “unfit for purpose and unjust.”

The President of the European Commission made the remark during a joint meeting of the committees for Tax Rulings and for Economic and Monetary Affairs on September 17. Juncker said that under the current rules, certain companies lose out while others “win by hiding behind a variety of national rules.” He called for “better insight into how multinational companies behave and how they make use of the differences between counties.” He said this would enable the Commission to “create some order.”

According to Juncker, “the internal market is incomplete in the area of corporate taxation.” He stressed the need to move towards tax harmonization, and said that the harmonized systems used to collect value-added tax and excise duties show that a common approach is possible. He added that the EU should move forward with plans for a common corporate tax base.

The President recommended that the European Council establish a committee on taxation, similar to that on financial and economic issues. It would build on the work of the Council’s Code of Conduct Group and report to ministers, he said.

Juncker was also quizzed about his previous role as Luxembourg’s Finance Minister. He told MEPs that he of course met with multinational companies during his time in office, but “never talked about tax issues with them.”

Source: taxNews – Juncker Criticizes ‘Unjust’ EU Tax Rules

Leave a Comment


Broker Cyprus TopFX