Assessing tax reporting obligations in the EU

Key points

The EESC:

• supports the Commission’s plans to achieve simplification, reduce the administrative burden and enhance the competitiveness of the European economy;
• considers that tax simplification should promote giving cost-efficient information, improving the use of and exchange of information between tax authorities. It should not lead to unfair or unintended changes of tax liabilities or open up possibilities for tax evasion or harmful tax competition;
• highlights that substantial simplification could also be achieved by harmonising similar, but not fully aligned, legal concepts and terminology enshrined in various EU directives about indirect taxation;
• considers that an impact assessment should be undertaken for every proposal in order to properly assess the concrete implications for taxpayers and companies of new legislative initiatives;
• recommends conducting competitiveness checks of new legislative initiatives in the field of taxation, including for SMEs, to ensure that the new rules actually support the planned objectives of the Commission in terms of simplification, decluttering and reduction of the administrative burden;
• proposes that a system of advance rulings at EU level be introduced. The establishment of a judicial body would provide clarity of interpretation for the directives and regulations implemented in Member States;
• recommends that a new Joint Transfer Pricing Forum should be set up.