Although considerable progress has already been made towards completing EMU, there is still a need to significantly reinforce all four of its pillars, taking care to maintain the balance between them, as neglecting one or more of these pillars could result in dangerous disparities. Resilience to crises is a necessary, but not sufficient, condition for completing EMU: it also requires a positive vision, as set out in Article 3 of the EU Treaty. The EESC generally calls on the European institutions and national governments to take much more ambitious action in the context of EMU reform in order to achieve a more integrated, more democratic and socially better developed Union.
The EESC welcomes the "Action Plan on VAT", and calls for a definitive VAT system that is clear, consistent, robust and comprehensive, as well as proportionate and future-proof. The Committee welcomes the strong focus on closing the VAT gap and tackling the susceptibility of VAT to fraud. There should be results delivered without delay, including by improving cooperation between tax administrations. “Bona fide” enterprises should be protected and no new excessive measures should be imposed on them. The future system of reduced rates must combine flexibility and legal certainty, be transparent, and for the sake of simplicity the number of reduced rates and exemptions must be limited.
Fighting against tax avoidance and aggressive tax planning, both at the EU and at a global level, is an important political priority for the European Union. The EESC welcomes and endorses the Commission proposal, which aims to make the taxation system more transparent as this measure will boost public confidence. The EESC suggests that the Commission should aim for a more ambitious package. It proposes the disclosure of a wider range of data, the gradual reduction of the turnover threshold of EUR 750 Million and that the disclosed data is made publicly available in one of the official languages of the EU in order to achieve the objective of giving the public genuine access to data for the whole single market.
It proposes additional measures on communication, connectivity and civil society involvement.
The reporting mechanism will contribute to more tax justice and fair competition in the EU
The European Commission must set out more precise hallmarks for the proposed reporting obligations on cross-border tax arrangements and transactions in order to prevent subjective interpretation by taxpayers and tax authorities which could lead to over-reporting and administrative burdens, the European Economic and Social Committee (EESC) urges in its recently adopted opinion on disincentives to tax avoidance or evasion.
The European Economic and Social Committee (EESC) welcomes the European Commission's proposals regarding its Action Plan on VAT, which aim to modernise the EU Value Added Tax (VAT) system, at the same time calling for some modifications. It asks the Member States to do their utmost to implement the proposed reforms and move towards the definitive VAT system within a reasonable timeframe.
Officious transposition of the EU law at the national level undermines Single Market, increases costs and hinders development. Numerous governments of Member States use transposition process as an opportunity to address domestic political issues which results with "goldplating". This unfavorable tendency has negative impact on business and should be avoided by all possible means. Good regulation, consistent and stable legal framework, both at the national and the European level is what business counts on - these are some of the conclusions of the conference "Transposition of the European law – the key challenge to business activity", that took place on 6 December 2016 in Zagreb, Croatia.
In a recently adopted opinion, the European Economic and Social Committee (EESC) welcomes the European Commission's proposal to amend the European System of Financial Supervision (ESFS) with the objective of better tackling money laundering and terrorist financing in the European banking and financial sector, but calls for more comprehensive measures. These issues are, in its view, becoming increasingly dangerous in terms of the stability, safety and reputation of financial institutions and the financial sector as a whole. Additional measures are therefore of the utmost importance.