On July 15 the European Commission adopted its tax package for fair and simple taxation. Listen to our podcast to get all the insights:
The tax package is a response to the dual challenge of the current crisis: supporting a swift and sustainable economic recovery and ensuring sufficient public revenue in the EU. It contains three separate but complementary initiatives for fairer, simpler and modernised tax systems.
- The first document, the Tax Action Plan, contains a set of 25 initiatives the European Commission will implement between now and 2024 to make taxation fairer, simpler and more adapted to modern technologies. Some examples of initiatives relevant for the field of direct taxation are (i) the preparation of a legislative instrument introducing a common standardised EU wide system for WHT relief at source, (ii) the creation of an expert group on transfer pricing and (iii) the preparation of a communication regarding the Charter on taxpayer rights.
- The second document contains a legislative proposal to introduce DAC 7 (the next step after DAC 6), focussing on (i) digital platforms and (ii) the exchange of information to facilitate cross border tax audits. This proposal on DAC 7 includes proposed measures to facilitate cross border tax audits such as a specific procedure in the directive to organise cross border tax audits and makes the exchange of information more easy. Also, information on royalty payments would be added to the list of information that countries need to share amongst each other on a spontaneous basis.
- The third document, the communication on Tax Good Governance, aims to further strengthen how the EU can promote transparency and fair taxation. The main areas of action are (i) a reform of the Code of Conduct for Business Taxation, (ii) a review of the EU list of non-cooperative jurisdictions for tax purposes, (iii) a reinforcement of the EU’s tax good governance rules regarding EU funds and defensive measures and (iv) additional support for developing country partners in enhancing tax good governance.
Any further questions?
Do not hesitate to contact Pieter Deré , Jean-Philippe Van West, Véronique De Brabanter or Gilles Van Hulle.