Fair and Simple Taxation: Commission proposes new package of measures to contribute to Europe’s recovery and growth

Gentiloni Paolo

Paolo Gentiloni, European Commissioner for Economy. Co-operators:
Photographer: Dati Bendo
European Union, 2020
Source: EC – Audiovisual Service.

This article is brought to you in association with the European Commission.


The European Commission has today adopted an ambitious new Tax Package to ensure that EU tax policy supports Europe’s economic recovery and long-term growth. The Package is built on the twin pillars of fairness and simplicity. Fair taxation remains a top priority for the European Commission, as a means of protecting public revenues, which will play an important role for the EU’s economic recovery in the short-run and prosperity in the long-run.

Today’s Package seeks to boost tax fairness, by intensifying the fight against tax abuse, curbing unfair tax competition and increasing tax transparency. In parallel, it focusses on simplifying tax rules and procedures, to improve the environment for businesses across the EU. This includes removing tax obstacles and administrative burdens for taxpayers in many sectors, so that it is easier for companies to thrive and grow in the Single Market.

Today’s Tax Package is made up of three separate but related initiatives:

  • The Tax Action Plan presents 25 distinct actions to make taxation simpler, fairer and better attuned to the modern economy over the coming years. These actions will make life easier for honest taxpayers, by removing obstacles at every step, from registration to reporting, payment, verification and dispute resolution. The Action Plan will help Member States to harness the potential of data and new technologies, to better fight tax fraud, improve compliance and reduce administrative burdens.
  • The proposal on administrative cooperation (DAC 7) extends EU tax transparency rules to digital platforms, so that those who make money through the sale of goods or services on platforms pay their fair share of tax too. This new proposal will ensure that Member States automatically exchange information on the revenues generated by sellers on online platforms. The proposal also strengthens and clarifies the rules in other areas in which Member States work together to fight tax abuse, for example through joint tax audits.
  • The Communication on tax good governance focusses on promoting fair taxation and clamping down on unfair tax competition, in the EU and internationally. To this end, the Commission suggests a reform of the Code of Conduct, which addresses tax competition and tackles harmful tax practices within the EU. It also proposes improvements to the EU list of non-cooperative jurisdictions, which deals with non-EU countries that refuse to follow internationally agreed standards. This has, so far encouraged third countries to adopt tax good governance standards, but more needs to be done. The Communication also outlines the EU’s approach to work together with developing countries in the area of taxation, in line with the 2030 Sustainable Development agenda.

Today’s Package is the first part of a comprehensive and ambitious EU tax agenda for the coming years. The Commission will also work on a new approach to business taxation for the 21st century, to address the challenges of the digital economy and ensure all multinationals pay their fair share. In the context of the Green Deal, the Commission will make proposals to ensure that taxation supports the EU’s objective of reaching climate neutrality by 2050. This multi-faceted approach to reforming taxation in the EU aims to make taxation fairer, greener and fit for the modern economy, thus contributing to long-term, sustainable, inclusive growth.

Valdis Dombrovskis, Executive Vice-President for an Economy that works for People, said: “Now more than ever, Member States need secure tax revenues to invest in the people and businesses who need it most. At the same time, we need to break down tax obstacles and make it easier for EU companies to innovate, invest and grow. Today’s Tax Package takes us in the right direction, helping to make taxation fairer, more user-friendly and more adapted to our digital world.”

Paolo Gentiloni, Commissioner for Economy, said, “Fair taxation is the springboard that will help our economy bounce back from the crisis. We need to make life easier for honest citizens and businesses when it comes to paying their taxes, and harder for fraudsters and tax cheats. These proposals will help Member States to secure the revenues they need to invest in people and infrastructure, while creating a better tax environment for citizens and businesses throughout Europe.”

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

SCADA Security Conference 2017 in Prague, Czech Republic

INTERVIEW: Poverty, education and inclusion top new General Assembly President’s priority list

New UN data tool shows ‘mismatch’ between government aid and places modern slavery exists

Migration crisis update: mutual actions and solidarity needed as anti-migrant policies thrive

COP21 Breaking News_03 December: Unprecedented Global Alliance for Buildings and Construction to Combat Climate Change

Mergers: Commission opens in-depth investigation into PKN Orlen’s proposed acquisition of Lotos

We can save our ocean in three steps – if we act now

Questions directors need to ask in the age of stakeholder capitalism

Your recycling actually gets recycled, right? Not always, says this report

Why the 33,000 staff European Commission did not have a real contingency plan for the refugee crisis?

Extra mild ECB tapering of QE and zero interest rates keep euro low

Digital learning can help us close the global education gap. This is how

Fail fast, fail better: 3 ways companies can master innovation

World Migratory Bird Day highlights deadly risks of plastic pollution

EU Migrant Crisis: Italian Coast Guard Headquarters and Italian Navy to give host national opening addresses at Border Security 2016 in Rome

Here’s how India can soar in the Fourth Industrial Revolution

Youth policy in Europe not delivering for young people

5 ways the world is rallying around Australia as bushfires rage

How studying genetics and lifestyle can shape a healthier MENA region

UN chief welcomes DR Congo President’s promise to stand down

Back to school: Schoolchildren to receive milk, fruits and vegetables at school thanks to EU programme

Commission and EIB provide CureVac with a €75 million financing for vaccine development and expansion of manufacturing

UN agencies launch emergency plan for millions of Venezuelan refugees and migrants

How the EU sees its own and Russia’s role in Ukraine

Google succumbs unconditionally to EU’s “right to be forgotten” ruling

An Eastern Wind

Grave concern over escalating humanitarian crisis, casualties, displacement across northwest Syria: UN

Commission welcomes Bulgaria and Croatia’s entry into the Exchange Rate Mechanism II

Climate Change Revolution: by-laws for the world

Venezuelan crisis: MEPs reaffirm their support for Juan Guaidó

Deadly earthquake kills dozens in Turkey, UN stands in solidarity and offers support

EU shapes its ambitious strategy on India

Why the world needs systems leadership, not selfish leadership

ILO welcomes new UNDP report that places decent work at the heart of sustainable development

Biggest ever UN aid delivery in Syria provides relief to desperate civilians

China is sending science students to live with rural farmers – and crop yields are skyrocketing

EU and World Health Organisation team up to boost access to health services in developing countries

UN chief announces progress on committee to shape Syria’s political future

This entrepreneur built an island resort out of plastic waste

To beat hunger and combat climate change, world must ‘scale-up’ soil health – UN

Brussels waits for the Germans to arrive

The migration crisis is slowly melting the entire EU edifice

How Europe beat the financial crisis – and the risks it still faces

Could robot leaders do better than our current politicians?

UN agency chiefs condemn Saudi-coalition led air strike that killed dozens in western Yemen

COP21 Breaking News_03 December: UNFCCC Secretariat Launches Forest Information Hub

Security Council renews Central African Republic arms embargo

These are the world’s most fragile states in 2019

From mental health to suicide: the interruption of this chain reaction by prevention

‘Many challenges to overcome’ at UN, in fight against abuse: victims’ advocate

Commission welcomes the political agreement on the transitional rules for the Common Agricultural Policy (CAP)

Nigel Farage and Boris Johnson: who forced the two ‘brave’ Brexiteers to quit?

The developing countries keep the world going

Inclusion, empowerment and equality, must be ‘at the heart of our efforts’ to ensure sustainable development, says UN chief

The Venezuelan exodus to Roraima and its repercussions

The vicious cycle of poverty and exclusion spreads fast engulfing more children

What are the real debates surrounding immigration in an increasingly globalized world?

Parenting in the time of COVID-19? Consider these 6 tips from the WHO

Global Citizen – Volunteer Internships

Britain aligns with EU rivaling US on trade and Iran, abandons bilateral ‘Midsummer Night’s Dream’

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s