PAUL TANG DISCUSSES THE FUTURE OF EU TAX

Is the EU finally ready to implement several corporate tax measures it has long held at bay: a financial transaction tax, a common consolidated corporate tax base, and even a digital services tax, if OECD tax reform negotiations fall through? Dutch member of the European Parliament (MEP) Paul Tang hopes so, and he is uniquely poised to push for them as the first chair of the European Parliament’s new subcommittee on tax matters.

Fiscally, things have been a little strained for the EU, which spent the entire summer locked in heated negotiations over its long-term budget and how it will fund a massive €1.8 trillion plan that includes €750 billion for the bloc’s COVID-19 recovery. MEPs voted to fund it with new taxes — EU own resources — but the EP and EU member states disagreed over the precise mix.

As lawmakers hashed out the details, discussions evolved from the EP’s chambers to a hunger strike by one MEP, underscoring just how fraught these negotiations were. But on November 10 the European Parliament and European Council reached an agreement. That deal, which is pending final approval, commits to some — but not all — of the EP’s tax proposals. Notably, it punted on the financial transaction tax and CCCTB but said they might be included later.

Is the EU finally ready to implement several corporate tax measures it has long held at bay: a financial transaction tax, a common consolidated corporate tax base, and even a digital services tax, if OECD tax reform negotiations fall through? Dutch member of the European Parliament (MEP) Paul Tang hopes so, and he is uniquely poised to push for them as the first chair of the European Parliament’s new subcommittee on tax matters.

Fiscally, things have been a little strained for the EU, which spent the entire summer locked in heated negotiations over its long-term budget and how it will fund a massive €1.8 trillion plan that includes €750 billion for the bloc’s COVID-19 recovery. MEPs voted to fund it with new taxes — EU own resources — but the EP and EU member states disagreed over the precise mix.

As lawmakers hashed out the details, discussions evolved from the EP’s chambers to a hunger strike by one MEP, underscoring just how fraught these negotiations were. But on November 10 the European Parliament and European Council reached an agreement. That deal, which is pending final approval, commits to some — but not all — of the EP’s tax proposals. Notably, it punted on the financial transaction tax and CCCTB but said they might be included later.

Source: https://www.forbes.com/sites/taxnotes/2020/12/04/paul-tang-discusses-the-future-of-eu-tax/?sh=5f4d8e3311dc