Brussels to push ahead with common tax rules

Companies would save €1bn per year in administrative costs if the European Union adopts a common approach to corporate taxation, EU Economic and Tax Commissioner Pierre Moscovici has claimed.

The former French finance minister has posted an article to his online blog calling for a mandatory EU common consolidated corporate tax base, a plan that has been stalled for years because of opposition from countries including Ireland.

Brussels wants to revive the tax plan by proposing a phased-in approach that would postpone the plan’s consolidation element, but move toward a single way to calculate taxable income.

Mr Moscovici’s draft proposes a mandatory consolidated tax base “to better prevent profit shifting” and said the commission would seek European Parliament support to convince reluctant nations.

Tax changes require unanimous approval from EU states.

Article Source: