Opinion Factsheet  

A Fair and Efficient Corporate Tax System in the European Union: 5 Key Areas for Action

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Opinion Number: CDR 3865/2015
Rapporteur: VANRAES Jean-Luc
Commission: ECON
Status: Adopted
Date: 04/12/2015
 
highlight views and concerns of LRAs with regards to this topic
continue the work stream with the COR's initial opinion on this topic (on CCCTB by Gusty Graas, adopted in 2011)
where possible influence the EP's work in this field
After contacts with the CoR Philippe de Backer (BE/ALDE) tabled two amendments to the TAXE report by Theurer & Feirrera on the basis of two important points from the CoR opinion:
Amendment 785 on the treatment of debt financing in corporate tax systems
Amendment 792 on common accounting rules

The content of Amendment 792 is fully preserved in the final text of the report in point 120, which reads:
120. […]emphasises that, if it is to achieve one of its goals, i.e. reducing red tape, the application of a common consolidated tax base should be accompanied by the implementation of common accounting rules and appropriate harmonisation of administrative practices in tax matters;

Regarding the dossier in EP/ECON, the document adopted in Committee shares some of the CoR's key concerns, mainly the need for a Common Tax Base (CCTB) as a first step, which later on should be consolidated as well (CCCTB).
THE EUROPEAN COMMITTEE OF THE REGIONS

- highlights the complexity of the current rules on corporate taxation within the EU, as well as the lack of coordination and complementarity between the different systems of the various Member States;

- stresses the positive effects that a CCCTB is likely to have on economic growth, employment and tax equity as well as on public finances, including those of local and regional authorities; moreover, adequate, transparent and effective tax collection which is fair for all companies would bring about reductions in the tax burden;

- considers it desirable to immediately introduce a common consolidated corporate tax base. Since the negotiations on consolidation have been difficult and protracted, supports the Commission's approach concerning the postponement of the CCCTB's consolidation element if this allows for progress to be made with the negotiations on the other elements of the proposal, in particular establishing the common tax base;

- calls on the Commission to carefully study the potential impact on local and regional authorities, particularly on their budgets, of a new legislative proposal to implement the CCCTB, without however restarting the whole procedure for analysing the impact of the CCCTB, which would unnecessarily delay its implementation;

- calls for the BEPS package to be implemented by the European Commission and the Member States and regions with legislative powers in the area of corporate taxation on a binding basis through a new anti-BEPS directive in order to combat these phenomena effectively within the EU.

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EP adopts resolutions on CCTB and CCCTB

On Thursday 15 March 2018, the European Parliament's plenary adopted two resolutions on the Common Corporate Tax Base (CCTB) and the Common Consolidated Corporate Tax Base (CCCTB) on the basis of the reports by Paul Tang (S&D, NL) and Alain Lamassoure (EPP, FR)

 
15 Mar
 

EP Committee adopts position on CCTB and CCCTB proposals

The draft reports on the CCTB by rapporteur Paul Tang (NL, S&D) and on the CCCTB by rapporteur Alain Lamassoure (FR, EPP) were adopted by the European Parliament's ECON Committee on 21 february 2018.
The reports will now be voted on by Parliament as a whole at the March plenary session.

 
21 Feb
 

New CCTB and CCCTB proposals from the Commission

In the framework of the implementation of the Action Plan contained in the communication " A Fair and Efficient Corporate Tax System in the European Union", the Commission presented on 25 October 2016 two separate proposals for Council directives: one on a common corporate tax base (CCTB) and the other on a common consolidated corporate tax base (CCCTB). This reflects the Commission's new approach of first finding agreement on a common tax base and later tackling the potentially thornier issue of consolidation.

 
25 Oct
 

CoR Plenary Session

Jean-Luc Vanraes' opinion was adopted during the CoR Plenary.

 
03 Dec
 

European Parliament

One of the amendments submitted by Vanraes to ALDE MEPs was successfully adopted in final EP resolution: emphasises that, if it is to achieve one of its goals, i.e. reducing red tape, the application of a common consolidated tax base should be accompanied by the implementation of common accounting rules;

 
24 Nov
 

CoR Commission activity

During its meeting on 29 September 2015 in Gelsenkirchen (Germany) the CoR's ECON Commission discusses, amends, and adopts the rapporteur's draft opinion. The consolidated text adopted in ECON is available here. It will be discussed in the CoR Plenary in December.

 
28 Sep
 

Rapporteur's activities

CoR rapporteur submitted 9 amendments to relevant ALDE MEPs for the TAXE report.

 
20 Sep
 

Rapporteur's activities

Jean-Luc Vanraes meets the fiscal attaché from the Dutch Permanent Representation to the EU.

 
15 Sep
 

Rapporteur's activities

Jean-Luc Vanraes meets the European Parliament's co-rapporteur on " Tax rulings and other measures similar in nature or effect", Michael Theurer (DE/ALDE).They discuss the issues at stake and Mr. Theurer's draft report.

 
15 Sep
 

Rapporteur's activities

The rapporteur's draft opinion on "A Fair and Efficient Corporate Tax System" is published ahead of its discussion in the ECON meeting on 29 September 2015.The draft opinion is available here.

 
01 Sep
 

Rapporteur's activities

Jean-Luc Vanraes meets the fiscal attaché from the Italian Permanent Representation to the EU.

 
02 Aug
 

Rapporteur's activities

Rapporteur Jean-Luc Vanraes meets representatives of the European Commission's unit for "Company Taxation initiatives" of DG TAXUD to discuss the Commission's initiative.

 
29 Jul
 

Rapporteur's activities

Jean-Luc Vanraes discusses the topic with the fiscal attachés from the Belgian and French Permanent Representations to the EU.

 
29 Jul
 

Rapporteur's activities

Rapporteur Jean-Luc Vanraes meets the fiscal attaché from the Irish Permanent Representation to the EU.

 
23 Jul
 

CoR Commission activity

The CoR's Commission for Economic Policy (ECON) appoints Jean-Luc Vanraes as rapporteur on this dossier.Jean-Luc Vanraes (BE/ALDE) is a member of the Municipal Council of Uccle and president of Uccle public welfare centre (CPAS/OCMW)

 
14 Jul
 

European Commission

European Commission publishes its Action Plan for "A Fair and Efficient Corporate Tax System in the EU". (ref: COM(2015)302 final)

 
16 Jun