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

EU budget: Stepping up the EU’s role as a security and defence provider

Statement by President von der Leyen on recent developments related to Iran and Iraq

The energy industry is changing. Are governments switched on?

Myanmar military leaders must face genocide charges – UN report

The MH17 tragedy to put a tombstone on Ukrainian civil war

Climate change and health: Raising awareness is the key for greener actions

We have a space debris problem. Here’s how to solve it

The US reject EU proposal for prudential financial controls

The EU has to prove it can remain one piece

Will Merkel ever steer the EU migration Titanic and restore her power in Germany?

The EU Commission openly repudiates the austere economic policies

Drones, disinfectant, distancing – Europe’s beaches open up

Unemployment worries spike around the world as coronavirus remains top global concern

The European Commission cuts roaming charges. But “it’s not enough”…

Post the pandemic: keeping our worlds turning

These rules could save humanity from the threat of rogue AI

Unemployment is down across the world’s largest economies

COVID-19: EU co-finances the delivery of more protective equipment to China

Global leaders and companies pledge to reduce the gender pay gap by 2030

Climate change: new rules agreed to determine which investments are green

The EU’s Response to COVID-19

Dangers of poor quality health care revealed ‘in all countries’: WHO report

Mergers: Commission opens in-depth investigation into joint ventures proposed by Boeing and Embraer

4 things ISPs can do to reduce the impact of cybercrime

Implementation of EU Facility for Refugees in Turkey: EU mobilises €663 million in humanitarian assistance

Palestine refugee crisis ‘expanding’; leaving highest number at risk this century across Gaza

European Commission requests that Italy presents a revised draft budgetary plan for 2019

ECB’s new money bonanza handed out to help the real economy or create new bubbles?

From ‘dead on the inside’ to ‘truly alive’: Survivor of genocide against the Tutsi in Rwanda recounts her story as UN marks 25th anniversary

On Youth Participation: Are we active citizens?

Huge data gaps’ hampering ‘evidence-based’ national migration policies

COP24: A million lives could be saved by 2050 through climate action, UN health agency reveals

EU-U.S. Privacy Shield: Second review shows improvements but a permanent Ombudsperson should be nominated by 28 February 2019

EU Commission indifferent on Court of Auditors’ recommendations

First-ever global conference of national counter-terrorism chiefs will strengthen cooperation, build ‘resilient’ States, says top UN official

COVID-19 tracing apps: MEPs stress the need to preserve citizens’ privacy

Almost there: Equal healthcare for LGBTQI+

Palestine refugees’ relief chief warns Security Council money to fund Gaza operations will run out in mid-June

We must learn and change after Haiti sexual abuse scandal -Oxfam chief

Online radio and news broadcasts: Parliament and Council reach deal

Health is nothing but the main consequence of climate change

Marco Polo’s Dream

Rural Bangladesh has already embraced renewable energy. Here’s what the rest of the world can learn

Europe plans to send satellites into space to monitor CO2 emissions

US now has most coronavirus cases in the world – Today’s coronavirus updates

UN chief lauds Fijians as ‘natural global leaders’ on climate, environment, hails ‘symbiotic relationship’ with land and sea

The 28 EU leaders care more about fiscal orthodoxy than effectively fighting youth unemployment

Lagarde: Keep feeding the banks cut down wages and food subsidies

Recognizing, protecting and empowering youth rights in Europe and the world

Should Europe be afraid of the developing world?

Most fish consumers support a ban on fishing endangered species, poll finds

New rules allow EU consumers to defend their rights collectively

The Great Reset needs great leaders to help the most vulnerable

A bad marriage can be as unhealthy as smoking and drinking

EU job-search aid worth €9.9 million for 1,858 former Air France workers

From Model T to EV: a short history of motor vehicle manufacturing

African elephants under continued threat of poaching, warns UN-backed report

This Dutch company has devised an innovative way to deal with food waste

Quicker freezing and confiscation of criminal assets in the EU

Euro celebrates its 20th birthday

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