The Commission presented an Action Plan to fundamentally reform corporate taxation in the EU. The Action Plan sets out a series of initiatives to tackle tax avoidance, secure sustainable revenues and strengthen the Single Market for businesses. Collectively, these measures will significantly improve the corporate tax environment in the EU, making it fairer, more efficient and more growth-friendly.
Key actions include a strategy to re-launch the Common Consolidated Corporate Tax Base (CCCTB) and a framework to ensure effective taxation where profits are generated. The Commission is also publishing a first pan-EU list of third-country non-cooperative tax jurisdictions and launching a public consultation to assess whether companies should have to publicly disclose certain tax information.
Relaunching the CCCTB
The Commission will come forward with a new proposal in 2016 to revive the CCCTB, based on two key changes:
- First, it will propose a mandatory CCCTB. This would improve it's capacity to prevent profit shifting - an optional system is unlikely to be used by companies that aggressive tax plan to avoid taxes.
- Second, it will propose that the CCCTB is introduced through a step-by-step approach. This should make it more manageable for Member States to agree. The primary focus should be on securing the common tax base, starting with international elements related to BEPS. The Commission will propose postponing consolidation until after the common base has been implemented.
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