“Today the European Commission introduces a common system for calculating the tax base for companies operating in the European Union.” In 2011, the head of the European Union’s executive branch was still Portuguese Jose Manuel Barroso, And the commission appeared Really ready To introduce what is called CCCTB, or Unified Corporate Tax Base. In short, it was an attempt at the voluntary harmonization of corporate taxes applied in European Union countries. A tool to avoid financial dumping, or downward competition between 27 European tax systems that still allow today Multinational companies With huge profits in Europe to pay the few taxes it requires Some Member states, which have similar rules for tax havens. Today, the Commission has permanently abandoned this proposal to replace it with a new “fiscal future agenda” that does nothing immediately but postpone a fairer European taxation project to at least 2023.
From Ccctb to Befit
With Text Adopted by the European Commission today, CCCTB has been “pulled” to make room for Befit, an acronym for Business in Europe: Income Tax Framework. This is a project to modernize European tax rules which, as the Economic Commissioner explained, Paolo Gentiloni, “It is from the last century” and must be updated “if we are to use tax authorities to reduce fraud, tax evasion and tax evasion” and “to make people pay taxes where profits are made by large companies, not in the places where our registered offices are”. Third, the former prime minister explained, the goal is “minimum taxes to avoid unfair competition between European countries” and thus “harm each other as it happens”.
Negotiation was suspended for ten years
Tones and contents similar to those used by Gentiloni’s predecessor, Pierre Moscovici, Which was in 2016 It was re-launched The 2011 proposal has already been stalled for five years due to the veto power of countries benefiting the most from the current tax competition. “We must continue our fight against tax evasion, which results in real change,” Moskovici said. Then he called on the finance ministers to “examine this ambitious and timely package with fresh eyes as it would create a strong and appropriate tax system for 20 countries. First century.” Meanwhile, Europe has entered the third decade of the third millennium and there is still no agreement in sight between the 27 countries.
Hence the selection of the committee for Ursula von der Leyen To start from scratch, postponing the game to 2023. The date Palazzo Berlaymont hopes to have reached an agreement in the G20 and the OECD with the European Union’s partner countries. Hope hangs on Last suggestion From the President of the United States Joe Biden, Which wants to impose a global corporate tax of 21%. A plan that has won near unanimous approval from the other side of the Atlantic, even if the United Kingdom begins to emerge The first doubts. Away from the international controversy, there is still a shift for the European Commission which just two years ago promised to reconsider the joint corporate tax project proposed in the “remote” 2011. “It should focus – it reads Engagement letter Gentiloni is signed by von der Leyen – to make our tax systems simpler, clearer, and easier to use. In this context, it should lead the efforts to make the corporate tax standard a reality “or CCCTB, which has now been permanently abandoned by the Commission itself.”
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