The EESC welcomes and supports the European Commission's decision to tackle the problem of intermediaries enabling aggressive tax planning. The Committee notes that the related administrative costs must be reduced to the furthest extent possible for all sizes of businesses and stresses that the taxpayer carries the ultimate responsibility to comply with the proposed directive.
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Taxation - Related Opinions
The EESC is in favour of creating a Pan-European personal pension product – PEPP but is unclear as to whether the investment arising from this initiative will remain within the EU and on the impact on labour mobility across the EU. Every effort, by way of tax relief, should be provided to encourage as many workers as possible to take up personal pension products. The EESC emphasises the need for consumer protection and risk mitigation for savers during the course of their working lives and on retirement. The EESC also underlines the importance of the role of the European Insurance and Occupational Pensions Authority (EIOPA) in monitoring the market and national supervisory regimes with a view to achieving convergence and consistency across the EU especially regarding the governance structure for PEPPs within any provider.
The EESC believes that the collaborative economy may offer a new opportunity for growth and development for the countries of the EU. The Committee underlines that given the particularly fluid and rapid nature of change in this sector, it is crucial for fiscal regulatory systems and tax regimes to be adapted in an intelligent and flexible way. The EESC urges the Commission and the Member States to work together to adopt an overall legal framework for the collaborative economy that can coordinate and standardise the tax rules that apply to these new forms of economic activity.
The EESC is a strong advocate of a fair, well-administered and sustainable development policy at EU level. It is also very committed to the cause of greater tax justice. In recent years, questions have been raised as to whether the international tax policies of the Member States, in particular the concluding of certain types of double taxation agreements, are consistent with EU development policy objectives.
The Committee calls on the Member States to step up their efforts in combatting aggressive tax planning, along with tax avoidance that could lead to significant losses of revenue for Member States' budgets. The EESC believes that the harmonisation and simplification of tax rules should be a priority for the Member States and that the elimination of tax barriers should go hand in hand with these harmonisation efforts. The Committee proposes to extend the common consolidated corporate tax base (CCCTB) and recommends that Member States to look for solutions to implement the recommendations of the High Level Group on Own Resources. Finally, the EESC feels that the introduction of qualified majority voting in the field of direct taxation could support better the efforts to harmonise the rules on establishing the tax base for the main taxes.
The EESC endorses the aims of the Commission proposals in the area of the CCCTB and recommends the greatest efforts be made to pursue the CCCTB by consensus. The Committee recognizes that the Commission relaunched the CCCTB proposal both with the objective to aid the single market and to combat aggressive tax planning, attributing income where the value is created.
The EESC welcomes the package on the modernisation of VAT on cross-border e-commerce, and endorses both its objectives and its focus on addressing the concerns of SMEs. The Committee welcomes the proposed extension of the MOSS to goods as it creates conditions for the possible removal of the Low Value Consignment Relief (LVCR) scheme. Furthermore, the amendments to the VAT rates applicable to e-publications rules would eliminate the distinction between physical and non-physical publications, and ensure neutrality in this market.
The EESC supports the measures that the European Union has put in place to tackle all forms of tax fraud and takes the view that the reverse charge mechanism for collecting value added tax (VAT) may be a useful tool in countering carousel fraud and VAT evasion. However, the use of the reverse charge mechanism, which is a derogation from the established principles on VAT, must not be allowed to harm the internal market and it must be temporary and properly assessed by the Commission.
The Committee furthermore recommends focusing particular attention on the proportionality principle, as the cost of compliance for small and medium-sized enterprises (SMEs) related to introducing a reverse charge mechanism could be considerable.
The EESC welcomes the Commission proposal for a Council Directive to improve double taxation dispute resolution mechanisms in the EU. Double taxation is one of the biggest tax obstacles to the Single Market. There is an urgent need for mechanisms ensuring that cases of double taxation are resolved more quickly and more decisively when they arise between Member States. Therefore it is urgent to implement this proposal.