Titled 'A Fair and Efficient Corporate Tax System in the European Union', the plan identifies a number of measures designed to address corporate tax challenges and issues of abuse. This technical briefing provides a detailed summary of the key points.
Addressing the challenges
The European Commission's action plan is aimed at achieving a fair and simple tax code within the EU, whilst encouraging certain non-EU countries to embrace good tax governance. The Action Plan includes:
- The re-launch of the Common Consolidated Corporate Tax Base (CCCTB)
- a number of initiatives to ensure effective taxation where profits are generated
- measures for a better tax environment for business
- a public consultation aimed at improving tax transparency
- a list of non-cooperative tax jurisdictions.
A central piece of the action plan – the re-launch of the CCCTB – is a 'very ambitious initiative', although it will have a number of advantages. This ambitious plan has been developed at a time when the Organisation for Economic Co-operation and Development (OECD) is working to address Base Erosion and Profit Shifting (BEPS). It will be interesting to see whether a number of Member States will adopt the CCCTB under an enhanced cooperation model.