The EESC welcomes the Commission initiative for the strategy on business taxation in the 21st century. The EESC strongly supports and appreciates the fact that the Commission is aligning its work with the international discussions and agreements and encourages the Commission to pursue its Action Plan for Fair and Simple Taxation Supporting the Recovery Strategy. The EESC is calling for uniform and globally concerted and coordinated implementation of Pillars 1 and 2 of the OECD agreement.
Proposal for a Council Directive on a Common Corporate Tax Base (CCTB) - Related Opinions
The EESC has in numerous opinions urged for a fair, efficient and growth-friendly corporate tax system, based on the principle that companies should pay taxes in the country where profits are generated. Thus, the Committee welcomes the Commission’s initiatives intended to combat aggressive tax planning and broadly supports the proposed measures as regards the essential elements of the two legislative proposals, the Anti-Tax-Avoidance-Directive as well as the Directive on Administrative Cooperation. It advocates for a more precise scope and framework in certain specific areas (such as e.g. the switch-over clause). The Committee urges to finish drawing up the list of countries or regions which refuse to apply good governance standards and considers that the envisaged legislative measures should not apply to SMEs.
The EESC expresses its support for the Commission in combating the erosion of Member States' tax bases and unfair tax competition. The Committee in this context endorses the introduction of a CCCTB and is also pleased that the Commission has published a list of non-cooperative tax jurisdictions. The EESC goes even further and proposes that EU rules should include sanctions for companies that continue to run their business through tax havens.
The proposal for a Common Consolidated Corporate Tax Base spurs the debate among policymakers and stakeholders. Opinions diverge whether such a project would remove obstacles to the completion of the Single Market and reduce compliance cost - or if it would rather impose further red tape, raise compliance cost and take away tax sovereignty from national legislators. The EESC generally supports the Commission proposal, but certain aspects remain controversial among it's members.