EU Parliament Calls For ‘Corporate Tax Makeover’
Members of the European Parliament have called on European Union (EU) member states to agree on mandatory country-by-country reporting for multinationals, a common consolidated corporate tax base (CCCTB), common definitions for tax terms, and more transparency on national tax rulings.
A resolution containing these recommendations was passed by 508 votes to 108, with 85 abstentions.
The resolution recommended the introduction of mandatory country-by-country reporting by multinational companies of financial data, including profits made, taxes paid, and subsidies received. It said that the best way to put an end to preferential regimes, mismatches between national systems, and tackle base erosion at a European level is the early implementation of a compulsory EU-wide CCCTB.
MEPs also agreed that EU member states should systematically share their national tax rulings and tax information that has an impact on other member states. They said that the European Commission should receive this information, and that clear definitions of “economic substance” and other determining factors of corporate tax bills should be drawn up. Finally, they argued that those whistleblowers whose information promotes the public interest should be better protected.
Source: Tax News – EU Parliament Calls For ‘Corporate Tax Makeover’
