Taxation of profits of multinationals in the digital economy - Related Opinions
The EESC proposes launching a European pact to effectively combat tax fraud, evasion and avoidance and money laundering. The Committee calls on the European Commission to promote a political initiative involving national governments and the other European institutions in achieving this goal, fostering the consensus needed for this and involving civil society. Cooperation between Member States should be the main pillar of the pact. The Committee urges the European institutions and the Member States to provide the financial and human resources required for the effective implementation of existing European legislation and to agree on a commitment to adopt all necessary new legislative and administrative measures to effectively combat tax offences and bad practices, money laundering and the activities of tax havens. This requires permanent evaluation of the outcome of implementing each measure.
The EESC believes that there are well-founded reasons to establish uniform rules within the EU to combat global warming and based on these to embark on international discussions with other trading blocs. Furthermore, the Committee deems that, in the future, it could be useful and necessary to also devise new taxation measures that can supplement the current emissions trading system and national carbon taxes in order to achieve an effective and symmetrical policy framework to tackle the increasing amount of CO2 emissions.
Taxation policies are fundamental for the SDGs as they determine the economic environment in which investment, employment, and innovation take place while providing the government with revenues for financing public spending. Businesses are global drivers of productivity, inclusive economic growth, job creation, investment and innovation. Private sector expertise holds the keys to unlocking many of the challenges linked to sustainable development. Tax bases should be as broad as possible allowing tax rates to be as non-distortive as possible.
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 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 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.